FCIK asks J&K Bank for uniform property valuation policy

The Federation of Chambers of Industries Kashmir (FCIK) has urged Jammu and Kashmir Bank to adopt a uniform, evidence-based mechanism for valuing mortgaged properties, alleging that inconsistent assessments are restricting MSMEs from accessing credit and making debt settlements difficult. FCIK said bank-approved valuers rely excessively on informal inquiries and sellers' asking prices rather than verified transactions, and called for government-notified circle rates and registered sale deeds to form the principal basis for valuation.

The Federation also flagged the use of lower or distress values for loan eligibility but higher market estimates for calculating net present value in compromise settlements, calling this a double disadvantage for borrowers. It questioned the reported requirement that a collateral auction must fail before realisable value can be considered for a settlement, and urged the bank to prescribe clear rules on valuation methodology and independent scrutiny across all branches. FCIK said transparent valuations would spare loan applicants unwarranted collateral demands and help stressed borrowers settle debts on realistic terms.