Property_Manu - Final - The New India Assurance Co. Ltd.

The New India Assurance Co.Ltd.PROPERTY CELL: HO: RB: CIR: 03: 156May 29, 2003ALL ROsKind Attn: ASST. GEN. MANAGER/ REGIONAL MANAGERRe: Procedure for acquiring new premises on lease/ rental basisYour reference is drawn to CVC circular no. 15/B dated 8 th September 1999 (copy enclosed)wherein it has been stated that press advertisement is not necessary in case of acquiring officeaccommodation with monthly rent up to Rs. 1 lac in metro town in Delhi, Mumbai, Kolkata andChennai and for other places with rent up to Rs.50,000/-. Based on these guidelines the CompetentAuthority on merits of individual cases have sometimes decided to waive placing pressadvertisement so that expenses on advertising and delay in acquiring new premises is minimized.In such cases, RO’s have been advised to search and select new premises and send theirrecommendations to HO for approval by the Competent Authority. We have been receiving variousqueries from RO on the procedure to be adopted in such cases, which evidently is devoid ofpress advertisement.In order to streamline the process and to ensure uniform practice and compliance of CVCguidelines we suggest the following steps be taken by RO on receipt of such approvals from HO:1. RO to appoint a Committee as stipulated in the Compendium of Property Cell in order toproceed in the matter.2. The Committee would identify areas in which the office is proposed to be shifted/ opened.3. Based on the locality so selected, obtain an area valuation of the locality so that a justifiablecomparison can be made later with the offers in hand.4. After the area valuation is obtained the Committee would then be required to search forpremises and select the most suitable option. While selecting premises due considerationbe given to public accessibility, office requirements like ventilation, adequacy of parking,lifts, toilets, carpet area sanctioned, reasonability of rent quoted etc. The committee to obtaindetailed offer letter from vendors enumerating all the terms and conditions including sharingof lease registration expenses, period of lease along with renewal terms, maintenanceexpenses, if any.5. After selecting the premises a competent Advocate be appointed to obtain title clearance.6. Based on a clear title the committee may then obtain 2 independent valuations specific tothe building so selected.MANUAL ON PROPERTY57