Rules 15 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 15 to 17 are the enforcement chapter of the Registered Valuers Rules. Rule 15 says the authority may cancel or suspend a valuer's registration or an organisation's recognition. Rule 16 lets anyone file a complaint. Rule 17 sets out the show-cause procedure, the possible orders and the appeal. This article reads them as amended up to 1 June 2026 (IBBI consolidated text to 22 November 2022 read with G.S.R. 432(E)); later amendments should be checked. These rules were not changed by the 2022 or 2026 amendments.
The authority may cancel or suspend registration or recognition for violation of the Act, any other law allowing the valuer to perform valuation, the rules or a condition of registration or recognition. A complaint costs a non-refundable rupees one thousand. Action starts with a written show-cause notice; the order is reasoned, may be no action, a warning, suspension, cancellation or a change of partner, director or board, and takes effect after thirty days unless stated otherwise. An appeal lies to the authority.
Rule 15: grounds
The authority may cancel or suspend the registration of a valuer, or the recognition of a registered valuers organisation, for violation of:
- the provisions of the Act;
- any other law allowing him to perform valuation;
- these rules; or
- any condition of registration or recognition.
The manner is the one specified in rule 17. Because the conditions of registration (rule 7) and recognition (rule 14) are themselves grounds, a breach of a condition such as keeping records, or an organisation's duty to keep its register public, can lead to action. See our articles on rules 7 to 11 and rules 12 to 14A.
A valuer or organisation that receives a notice should get early advice on the reply; our legal consultation team can help.
Rule 16: complaints
A complaint may be filed against a registered valuer or a registered valuers organisation before the authority, in person or by post or courier, with a non-refundable fee of rupees one thousand in favour of the authority. The authority examines the complaint and takes such necessary action as it deems fit.
Proviso. Where the complaint is against a registered valuer who is a partner of a partnership entity or a director of a company, the authority may refer the complaint to the relevant registered valuers organisation, which must handle it in accordance with its bye-laws. Those bye-laws must include a grievance redressal and disciplinary process; see our article on the model bye-laws.
The rule does not say who may complain, so any person may. It also prints no time limit for the authority to act on a complaint.
Rule 17: the procedure
17(1): starting the process
Based on the findings of an inspection or investigation, a complaint received, or material otherwise on record, if the authorised officer is of the prima facie opinion that sufficient cause exists to cancel or suspend the registration of a valuer or the recognition of an RVO, the officer issues a show-cause notice to the valuer or the RVO.
The proviso is specific to a professional institute that has been recognised under clause (ii) of rule 12(1). The authorised officer does not inspect or investigate; instead, he seeks the information required from the organisation within the time specified. If the organisation defaults, he gives one more opportunity. Failing that, or if the information is not sufficient or satisfactory, he either begins the process under rule 17 or refers the matter to the Central Government for appropriate directions.
17(2): contents of the notice
The show-cause notice must be in writing and state:
| Clause | Content |
|---|---|
| (a) | The provisions of the Act and rules under which it is issued |
| (b) | The details of the alleged facts |
| (c) | The details of the evidence in support |
| (d) | The provisions of the Act, rules or certificate allegedly violated, or the manner in which the public interest is alleged to be affected |
| (e) | The actions or directions the authority proposes to take if the allegations are established |
| (f) | The manner in which the person must respond |
| (g) | The consequences of failing to respond within the given time |
| (h) | The procedure for disposal of the notice |
17(3): service
The notice is served by (a) registered post with acknowledgment due to the registered address of the valuer or RVO, or (b) appropriate electronic means to the email address the valuer or RVO gave the authority. Since the email route depends on the address on record, a valuer or RVO that changes contact details should intimate the authority; rule 7A provides for this.
17(4) to (8): the order
| Sub-rule | Provision |
|---|---|
| 17(4) | The authorised officer disposes of the notice by a reasoned order in adherence to the principles of natural justice |
| 17(5) | The order may provide for: (a) no action; (b) warning; (c) suspension or cancellation of the registration or recognition; or (d) a change in any one or more partner or director, or the governing board of the RVO |
| 17(6) | An order cancelling the recognition of an RVO specifies the time within which its members may take membership of another RVO recognised for the relevant asset class, without prejudice to their registration |
| 17(7) | The order is issued to the concerned person immediately and published on the authority's website |
| 17(8) | The order does not become effective until thirty days have elapsed from the date of issue, unless stated otherwise |
Sub-rule (6) protects the members of an RVO whose recognition is cancelled: their own registrations are not affected, and they are given time to move to another recognised organisation. Sub-rule (8) gives a thirty-day gap before the order bites, and the words "unless stated otherwise" let the order itself provide differently.
17(9): appeal
Any person aggrieved by an order of the authorised officer under sub-rule (5) may prefer an appeal before the authority. The rule prints no period for the appeal and does not say who hears it within the authority.
Explanation. The authorised officer is an officer specified by the authority.
Process at a glance
| Step | Rule | Period as printed |
|---|---|---|
| Complaint filed with fee | 16 | No period; fee rupees one thousand |
| Show-cause notice issued | 17(1), (2) | Response time stated in the notice |
| Service | 17(3) | Registered post with acknowledgment due, or email on record |
| Reasoned order | 17(4), (5) | No period printed |
| Order published | 17(7) | Immediately |
| Order effective | 17(8) | After thirty days unless stated otherwise |
| Appeal to the authority | 17(9) | No period printed |
Example
Neha Kapoor files a complaint, with the rupees one thousand fee, against a registered valuer who signed a report for her company without disclosing a conflict. The authority issues a show-cause notice to the valuer by email at the address on record. It states the alleged facts, the evidence and the rule allegedly violated, and the action proposed. The valuer replies. The authorised officer passes a reasoned order giving a warning. The order is published on the website. The valuer, aggrieved by the finding, appeals to the authority.
Need help with a notice or complaint under these rules?
A registered valuer, an organisation or a company that relied on a valuer may need to respond to a show-cause notice or consider a complaint. Our team can review the notice and the facts through legal consultation.
Key takeaways
- The authority may cancel or suspend registration or recognition for violation of the Act, another law allowing valuation, the rules or a condition.
- A complaint carries a non-refundable fee of rupees one thousand.
- A complaint against a partner or director of a valuer entity may be referred to the organisation.
- The show-cause notice is written, states eight things and is served by registered post or email.
- The order is reasoned; options run from no action to cancellation or change of partner, director or board.
- The order takes effect after thirty days unless it says otherwise, and an appeal lies to the authority.
Read next
- Rules 12 to 14A: registered valuers organisations
- Rules 18 to 21: valuation standards, the committee and punishment
- Section 247: registered valuers
- Annexure III: model bye-laws of an RVO
Disclaimer: Based on the Companies (Registered Valuers and Valuation) Rules, 2017 as consolidated by the Insolvency and Bankruptcy Board of India up to 22 November 2022, read with G.S.R. 432(E) of 1 June 2026 (consulted on 3 October 2026). Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.