1) Importance of Engineers and Chartered Accountants in DPR and TEV Studies: 

Engineers and Chartered Accountants play a critical role in the early-stage evaluation of infrastructure, industrial, and commercial projects. Their collaboration is essential in preparing Detailed Project Reports (DPRs) and conducting Techno-Economic Viability (TEV) studies, which are used by lenders, investors, and promoters to assess whether a project is feasible—technically and financially. These reports form the backbone of investment and lending decisions, influencing project approvals, financial structuring, and risk assessments.

Engineers and Chartered Accountants are indispensable professionals in the project evaluation process. Their combined expertise ensures that a project is not only technically feasible but also financially viable and sustainable over the long term. By preparing robust DPRs and TEV studies, they provide a solid foundation for decision-making by lenders, investors, and project promoters.

2) Importance of Legal Advisors in Lending and Mortgage Processes:

Legal Advisors play a vital role in safeguarding the interests of financial institutions during the lending process. Their primary responsibility is to verify the legal ownership, title clarity, and encumbrance status of the collateral offered by borrowers. Additionally, they draft and vet enforceable mortgage and loan documents, ensuring the lender’s rights are protected in the event of default or legal dispute. Their involvement is essential for risk mitigation, regulatory compliance, and ensuring enforceability of legal remedies such as loan recovery, foreclosure, or public auction.

Legal Advisors are a crucial part of the credit appraisal and disbursement process in any financial institution. Their expertise in verifying property titles, identifying legal risks, and preparing enforceable documents helps ensure that the institution’s interests are fully protected. In the event of borrower default, it is the strength of the legally sound mortgage documentation that enables successful recovery and reduces financial loss.

3) Role and Importance of a Consultant as a Valuer / Engineer :

3a) Importance of Techno-Legal Due Diligence (TLDD) Conducted by a Valuer / Engineer:

Techno-Legal Due Diligence (TLDD) is a critical assessment process that combines both technical evaluation and techno – legal verification of a property or project. When conducted by a qualified valuer, TLDD ensures that the physical asset is sound, legally compliant, and free from defects that could affect its market value or the lender’s security interest. This process is especially important for financial institutions, investors, and developers before funding, purchasing, or undertaking development of a property or project.

Techno-Legal Due Diligence conducted by a Valuer / Engineer is an integrated, multidisciplinary evaluation that ensures the asset is not only technically viable but also techno–legally secure. It helps lenders and stakeholders minimize risks, make informed decisions, and protect their financial interests. In today’s complex real estate and regulatory environment, TLDD is no longer optional—it is a necessity for responsible lending and investment.

3b) Role and Importance of a Consultant as a Valuer in the Banking Sector:

A valuer, also referred to as a valuation consultant, plays a crucial role in the lending and recovery process of financial institutions. The consultant as a Valuer plays a pivotal role in the credit life cycle of a loan. Their importance amplifies when an account becomes an NPA, as their valuation directly influences the bank’s recovery process, legal defensibility, and financial stability. A reliable valuation report helps banks recover dues efficiently and ensures that public auctions are conducted on a sound financial basis.

3c) Role and Importance of a Consultant as a Lender’s Independent Engineer (LIE)

A Lender’s Independent Engineer (LIE) is a third-party technical consultant appointed by financial institutions (banks or NBFCs) to monitor, evaluate, and certify the progress of large infrastructure, industrial, and real estate projects. The LIE works independently on behalf of the lender and ensures that the project is being implemented as per approved plans, timelines, and budgets.

The LIE acts as the eyes and ears of the lender and plays a critical role in protecting the lender’s investment by providing unbiased technical and financial assessments. The Lender’s Independent Engineer plays a vital and highly respected role in ensuring that financed projects are executed within defined scope, budget, and timelines. The LIE safeguards the interests of lenders by serving as an independent, technically competent, and financially informed project monitor throughout the execution phase. “Their involvement minimizes project risk, reduces the possibility of NPA, and ensures better loan performance.

Why These Pillars Matter:

Each of these professionals contributes uniquely to risk mitigation and decision-making The integrity and reliability of Engineers, Chartered Accountants, Legal Advisors, Valuers, and LIEs directly influence the quality of decisions made by banks and financial institutions. If even one of these pillars provides inaccurate or inadequate information, it can lead to a cascading failure—putting not just the loan at risk, but also the institution’s financial stability.

This isn’t just a private sector issue. It’s a public concern, as many of these institutions are backed by public funds, and their health affects the economy at large.

A Win-Win: Borrowers as Primary Beneficiaries:

While these professionals play a crucial role in protecting the interests of financial institutions, it is often the borrower who benefits the most from their insights. High-quality consultancy reports help identify potential challenges, compliance gaps, and project feasibility issues before the loan is sanctioned. This proactive approach enables course correction at the right time, improving the borrower’s chances of successful project execution and long-term financial sustainability.

In fact, good consultancy can help borrowers avoid costly delays, compliance issues, and operational risks. By ensuring the project is viable from the start, these professionals support not just loan approval, but also the borrower’s overall success.

Current Challenges

Unfortunately, many banks and financial institutions today tend to view consultant reports as mere formalities, often undervaluing their significance. This attitude is reflected in the low professional fees offered and a lack of strategic engagement with experienced consultants. As a result, highly qualified professionals are gradually moving away from the system—leading to a decline in report quality and increasing risk in lending.

Our Appeal to Financial Institutions

To protect institutional interests and the public good, we strongly urge all banks and financial institutions to:

• Recognize consultants as integral contributors to the lending and monitoring process, not just as service providers.
• Ensure fair professional remuneration to retain top talent and uphold high standards.
• Encourage and support quality consultancy, which not only identifies problems but also offers solutions that can reduce the chances of project failure.

Lending will always carry some level of risk. However, engaging skilled consultants early in the process can substantially mitigate those risks, identify bottlenecks, and offer remedial measures—leading to more successful projects and fewer non-performing assets (NPAs).

The Bigger Picture

By strengthening these professional pillars, financial institutions not only safeguard their own operations but also contribute to public interest, financial stability, and the growth of the national economy. A well-supported consultancy ecosystem ultimately leads to more effective project implementation and a stronger GDP.

In doing so, they also empower borrowers with a clearer path to success, lower financial risk, and long-term project viability. When supported by skilled consultants, the borrower stands to gain not just funding—but the foundation for sustainable growth.

Let us all recognize, respect, and empower the professionals who help build the foundation of our financial system.