Rules 18 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 18 to 21 close the main body of the Registered Valuers Rules. Rule 18 says the Central Government notifies valuation standards. Rule 19 provides for a Committee to advise on valuation matters and lists its members. Rules 20 and 21 attach punishment to contravention of the rules and to false statements in reports and certificates. 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.
The Central Government notifies and may modify valuation standards on the Committee's recommendation. The Committee has a Chairperson and members nominated by the Ministry of Corporate Affairs, IBBI, the Legislative Department, authorities, RVOs and industry, and, since June 2018, the Presidents of ICAI, ICSI and ICMAI as ex-officio members. Contravention is punishable under section 469(3) and a knowingly false or incomplete statement makes the person liable under section 448.
Rule 18: valuation standards
Rule 18 says the Central Government shall notify, and may modify from time to time, the valuation standards on the recommendations of the Committee set up under rule 19.
The rule links to rule 8(1), under which a registered valuer must comply with the standards "as notified or modified under rule 18". Until the standards are notified or modified, the proviso to rule 8(1) lets the valuer follow internationally accepted valuation standards or standards adopted by a registered valuers organisation. Our article on rule 8 covers that.
Rule 18 does not name any particular standard. A reader who needs to know which standards are currently notified should check the official notifications, or take legal consultation on the position for a given valuation.
Rule 19: the Committee to advise on valuation matters
19(1): purpose
The Central Government may constitute a Committee, to be known as the "Committee to advise on valuation matters", to make recommendations on the formulation and laying down of valuation standards and policies for compliance by companies and registered valuers. The word "may" means the rule leaves the constitution of the Committee to the Government's discretion.
19(2): composition
| Clause | Member |
|---|---|
| (a) | A Chairperson, a person of eminence and well versed in valuation, accountancy, finance, business administration, business law, corporate law or economics |
| (b) | One member nominated by the Ministry of Corporate Affairs |
| (c) | One member nominated by the Insolvency and Bankruptcy Board of India |
| (d) | One member nominated by the Legislative Department |
| (e) | Up to four members nominated by the Central Government representing authorities which allow valuations by registered valuers |
| (f) | Up to four members who are representatives of registered valuers organisations, nominated by the Central Government |
| (g) | Up to two members to represent industry and other stakeholders, nominated by the Central Government in consultation with the authority |
| (h) | The Presidents of the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India and the Institute of Cost Accountants of India, as ex-officio members |
Clause (h) was inserted by the Companies (Registered Valuers and Valuation) Second Amendment Rules, 2018 (G.S.R. 559(E) of 13 June 2018, in force 14 June 2018). Before that the three professional bodies had no seat as of right.
19(3): tenure
The Chairperson and members have a tenure of three years and shall not have more than two tenures. The rule applies the cap to "the Chairperson and Members"; it does not say whether ex-officio members are covered, and the text prints nothing on this.
Rule 20: punishment for contravention
Rule 20 says that, without prejudice to any other liabilities, where a person contravenes any of the provisions of these rules he shall be punishable in accordance with sub-section (3) of section 469 of the Act.
The rule itself prints no fine, term or period. It points to section 469(3), which is in the Act and not in these rules. A reader who wants the quantum must read that sub-section; for the section's place in the Act, see our note on sections 465 to 470. The phrase "without prejudice to any other liabilities" means a contravention of the rules may also attract consequences under other provisions, for example the cancellation or suspension of registration under rule 15, covered in our article on rules 15 to 17. Check the current text of section 469(3) before relying on any figure.
Rule 21: punishment for false statement
Rule 21 applies where, in any report, certificate or other document required by, or for the purposes of, any provision of the Act, the rules made under it or these rules, a person makes a statement:
- (a) which is false in any material particular, knowing it to be false; or
- (b) which omits any material fact, knowing it to be material.
He shall be liable under section 448 of the Act. The two limbs have the same structure: a material falsehood stated knowingly, or a material omission made knowingly. Both depend on knowledge. A mistaken figure is not, by this rule alone, a false statement in the sense of the rule. Our note on sections 448 and 449 explains the section. For valuers, rule 21 sits alongside rule 8(3), which lists what a valuation report must state, and the duty of honesty in Annexure I.
How the four rules fit together
| Rule | What it does | Who acts |
|---|---|---|
| 18 | Standards notified and modified | Central Government |
| 19 | Committee recommends standards and policies | Central Government constitutes it |
| 20 | Contravention of the rules punishable under section 469(3) | As the Act provides |
| 21 | Knowing false statement or omission liable under section 448 | As the Act provides |
Example
Harbour Infra Limited relies on a valuation report in which the valuer, knowing it was untrue, states that a plot had been inspected on a date when no inspection took place. Rule 21(a) applies: a statement false in a material particular, made knowing it to be false, makes the person liable under section 448. The authority may also act under rule 15 and rule 17 against the valuer's registration. A valuer who followed none of the standards that rule 8(1) allows would have contravened that rule, and rule 20 would point to section 469(3).
Need help understanding liability under the valuation rules?
Questions about valuation standards, the Committee's role or the consequences of a misstatement are easier to settle with the report and its background in hand. Our team can assist through legal consultation.
Key takeaways
- The Central Government notifies and may modify valuation standards on the Committee's recommendation.
- The Committee has a Chairperson, nominees of the Ministry, IBBI and the Legislative Department, up to four authority representatives, up to four RVO representatives, up to two stakeholder representatives and the three professional Presidents.
- Clause (h), the ICAI, ICSI and ICMAI Presidents, came in with the June 2018 amendment.
- Tenure is three years, with no more than two tenures.
- Contravention of the rules is punishable under section 469(3), and a knowingly false or incomplete statement under section 448.
- The rules themselves print no fine or term; the sections of the Act must be checked.
Read next
- Rule 8: how a valuation is conducted and what the report must contain
- Rules 15 to 17: cancellation, suspension and complaints
- Section 247: registered valuers
- Sections 448 and 449: false statement and false evidence
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.