For one of India’s leading banks, an NPA (Non-Performing Asset) recovery process turned into a nightmare – not because of the borrower alone, but because of cracks in the valuation system itself.
The asset at stake was a plot of land. Three years ago, the bank’s valuation report pegged its worth at ₹5 Crores. But when the borrower defaulted and the bank moved to auction the property, a shocking reality surfaced:
Current Valuation: ₹1 Crore
Loss in Value: ₹4 Crores
This wasn’t just a financial blow. It exposed systemic issues: missing records, inaccurate data, and a lack of digital accountability.
The challenge: a property that couldn’t be found
When the bank tried to revalidate the land before auction, the valuer hit a dead end. The property couldn’t be found.
The geo-coordinates were wrong. The conversion from agricultural to residential land had never happened. And without a digital trail, access to supporting documents, historical valuation records, or even the details of the valuer involved, there was no way to trace back what went wrong.
The results
₹4 crores vanished overnight.
With no audit trail, no supporting documents, and no accountability, the bank was left asking:
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Was the original ₹5 crore valuation genuine or grossly inflated?
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Who was the valuer responsible for the initial report?
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Where were the records to back up the original assessment?
The lack of transparency turned a straightforward recovery into a costly blind spot.
The root cause: valuations without digital safeguards
This case didn’t fail because of market conditions. It failed because the valuation process lacked basic digital protections:
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No live geo-tagging to verify the property’s location with certainty
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No audit trail to show how the original valuation was conducted or by whom
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No central repository to hold supporting documents and records
₹4 crores disappeared without a digital trace.
The turning point: a wake-up call for lenders
This isn’t just a cautionary tale, it’s a wake-up call.
Without digital safeguards, banks are exposed to hidden risks that can wipe out crores in asset value. Paper-based, fragmented systems don’t just slow recovery. They magnify losses, enable fraud, and leave banks defenseless when it matters most.
Key takeaways: preventing the next ₹4 crore loss
The solution lies in digital-first valuation platforms that provide:
- Geo-tagging for location integrity: every property digitally mapped and verified in real time
- Digital audit trails for accountability: every action, timestamp, and report detail logged
- Centralised repositories for records: eliminating missing files and fragmented systems
- Fraud prevention with data-backed decisioning: valuations that withstand scrutiny
The future of valuation: transparent, traceable, trustworthy
₹4 crores disappeared in the outskirts of Mumbai. Tomorrow, it could be more.
The lesson is clear: without transparent, traceable, digital-first valuations, no bank is safe.
That’s why leading lenders are turning to Valocity. With geo-tagging, digital audit trails, and secure data-backed valuation workflows, Valocity ensures every property is transparent, traceable, and trustworthy – protecting both assets and credibility when it matters most.
About Valocity
Valocity is a global leader in property data, AI and analytics, providing innovative solutions to streamline decision-making in the real estate, banking, and property valuation sector. Trusted by major lenders worldwide, Valocity’s platform harnesses the power of data to deliver actionable insights and drive efficiency for its customers.
For media inquiries, please contact:
Sara Pesic – Head of Marketing, Valocity