2.5.35:Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

(1) Where the valuation has been conducted under regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 or regulation 34 of the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017, as the case may be, the liquidator shall consider the average of the estimates of the values arrived under those provisions for the purposes of valuations under these regulations.

(2) In cases not covered under sub-regulation (1), the liquidator shall within seven days In cases not covered under sub-regulation (1) orSubstituted vide IBBI (Liquidation Process) (Amendment) Regulations, 2019 dated 25.07.2019 applicable only to liquidation processes, which commenced on or after 25th July, 2019. To view the notification, Click Here where the liquidator after consultation with the consultation committee under regulation 31A, is of the opinionSubstituted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. where the liquidator is of the opinion that fresh valuation is required under the circumstances, he shall within seven daysSubstituted vide IBBI (Liquidation Process) (Amendment) Regulations, 2019 dated 25.07.2019 applicable only to liquidation processes, which commenced on or after 25th July, 2019. To view the notification, Click Here of the liquidation commencement date, appoint two registered valuers to determine the realisable value of the assets or businesses under clauses (a) to (f) of regulation 32 of the corporate debtor:

Provided that, in respect of a corporate debtor classified as micro, small or medium enterprise under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the liquidator shall appoint one registered valuer of each asset class of the corporate debtor, unless the liquidator after consultation with the consultation committee decides, for reasons to be recorded in writing, to appoint two registered valuers.Inserted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2026 dated 19.05.2026. To view the notification, Click Here

Provided furtherInserted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2026 dated 19.05.2026. To view the notification, Click Here  that the following persons shall not be appointed as registered valuers, namely:-

(a) a relative of the liquidator;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor at any time during the five years preceding the insolvency commencement date; or
(d) a partner or director of the insolvency professional entity of which the liquidator is a partner or director.

(2)Substituted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here In cases not covered under sub-regulation (1) or where the committee, is of the opinion that fresh valuation is required under the circumstances, the liquidator shall within seven days of the liquidation commencement date, appoint two registered valuers to determine the realisable value of the assets under regulation 32 of the corporate debtor:

Provided that the following persons shall not be appointed as registered valuers, namely: –
(a) a relative of the liquidator;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor at any time during the five years preceding the insolvency commencement date; or
(d) a partner or director of the insolvency professional entity of which the liquidator is a partner or director.

(3) The Registered ValuersIBBI has clarified that
(i) appointment of any person, other than a ‘registered valuer’ is illegal and,
(ii) payment, whether as fee or otherwise, to any person, other than a ‘registered valuer’ for any valuation shall not form part of the insolvency resolution process costs or liquidation cost vide its Circular dated 13.08.2019. To view the Circular, Click Here. appointed under sub-regulation (2) shall independently submit to the liquidator the estimates of realisable value of the assets or businesses, as the case may be, or businesses, as the case may be,Omitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here computed in accordance with the Companies (Registered Valuers and Valuation) Rules, 2017, after physical verification of the assets of the corporate debtor.

(4) The average of two estimates received under sub-regulation (3) shall be taken as the value of the assets or businesses.Omitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here

(5)Inserted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. Where valuation is undertaken as per sub-regulation (2), the liquidator shall facilitate a meeting wherein registered valuers shall explain the methodology being adopted to arrive at valuation to the  consultationOmitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here committee before finalisation of valuation reports.

(6)Inserted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. The liquidator shall share the valuation reports with the members of the consultationOmitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here committee after obtaining an undertaking that they shall maintain the confidentiality of such reports and shall not use these reports to cause an undue gain or undue loss to itself or any other person.

(7)Inserted vide the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2024 dated 12.02.2024. To view the notification, Click here. In case there is deviation of twenty five percent in the valuation of an asset class under sub-regulation (2) from valuation under regulation 35 of the Insolvency and Bankruptcy Board of India(Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the liquidator shall facilitate a meeting wherein the registered valuers shall explain the reasons for the difference to the consultationOmitted vide Insolvency and Bankruptcy Board of India (Liquidation Process) (Fourth Amendment) Regulations, 2026 dated 01.06.2026. To view the notification, Click Here committee

35. Valuation of assets intended to be sold.

(1) The liquidator shall appoint at least two registered valuers to value the assets as required under Regulation 34(2).

(2) The provisions of Regulation 7 shall apply mutatis mutandis to registered valuers appointed under subregulation (1).

(3) The registered valuers appointed under sub-regulation (1) shall independently submit to the liquidator the estimates of the realizable value of the asset(s) computed in accordance with internationally accepted valuation standards, after physical verification of the assets of the corporate debtor.

(4) The average of the estimates received under sub-regulation (3) shall be considered the value of the assets.