Property valuation refers to the process of determining the fair market value of movable or immovable property by a competent authority, expert, or court-appointed valuer, based on recognized principles, prevailing market conditions, and applicable statutory.
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Introduction
Property valuation refers to the process of determining the fair market value of movable or immovable property by a competent authority, expert, or court-appointed valuer, based on recognized principles, prevailing market conditions, and applicable statutory guidelines. Such valuation assumes significance in legal proceedings involving disputes relating to ownership, compensation, attachment, confiscation, restitution, or enforcement of financial liabilities.
Under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), property valuation is not provided as a standalone or substantive provision; rather, it arises incidentally in various procedural contexts where the court or investigating agency is required to assess the value of property for the purpose of effective adjudication. These contexts include cases relating to seizure of property, custody and disposal of case property, execution of bonds, imposition and recovery of fines, grant of compensation to victims, and attachment or forfeiture of property involved in or derived from criminal activity.
In such proceedings, the court may rely upon valuation reports prepared by government-approved valuers, revenue authorities, or other qualified experts. The process of valuation must be objective, evidence-based, and aligned with applicable legal frameworks, including the Income-tax Act, 1961, the Indian Stamp Act, 1899, and the circle rates or guideline values notified by the competent authorities. The court retains the discretion to accept, reject, or direct reassessment of such valuation, if deemed necessary in the interest of justice.
Property valuation under BNSS is particularly important to ensure proportionality in penalties, to safeguard the rights and interests of affected parties, and to prevent arbitrary or excessive deprivation of property. It also promotes transparency and fairness in the management, custody, and disposal of seized or attached assets.
Thus, while the BNSS primarily governs procedural aspects of criminal law, property valuation functions as an essential ancillary mechanism that facilitates informed judicial decision-making and upholds the principles of equity, legality, and due process.
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