Cushman and Wakefield v Union of India, W.P.(C) 9883/2018, CM No. 38508/2018 - Synopsis
Team SoOLEGAL 22 Oct 2020

In Cushman and Wakefield v Union of India, W.P.(C) 9883/2018, CM No. 38508/2018, the Delhi High Court upheld the prohibition, agreeing with the government’s position that it was designed to ensure independence and the credibility of valuation professionals.

Cushman Wakefield, a global company providing valuation services, challenged the bar on subsidiaries and associates of bodies corporate from asset valuation. Cushman Wakefield argued that companies, such as itself, possessed rich and varied experience in the field, and barring them from asset valuation work was in violation of the principle of equality. The prohibition was not based on intelligible criteria and deserved to be struck down as arbitrary and illegal. Moreover, it could affect foreign investments in India.

For the government, it was submitted that the Valuers and Valuation Rules aim to develop valuation into a respected profession and in this endeavour, promote the integrity, impartiality, and ethics of valuation professionals. In prohibiting subsidiaries/associates, the rules checked potential conflicts of interest their parent companies might have in a given situation, because of business relationships.

Accepting the submissions, the Delhi High Court ruled that the restriction on subsidiaries and associates is reasonable. 

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