Insolvency rule change on valuers leads to lack of clarity on valuation gap

While some are already conducting valuations by two valuers, all others need to start this process from Apr 1

A recent notification asking the resolution professionals (RPs) of insolvent companies to engage two registered valuers is working as a double-edged sword. 

While the move helps in a better valuation, there is no clarity on how to decide between differing ones. While some are already conducting valuations by two valuers, all others need to start this process from April 1. Those already conducting two valuations for a company state both are often starkly different. RPs say they are going by the average of both values in such cases, as no mechanism is mentioned in the insolvency code. Sources say this