SOLVENCY CERTIFICATE

a)   The certificate is needed for getting a contract, participating in an auction, etc. The application should be received by the Tahsildar. A court fee stamp of the value of Rs.10/- should be affixed. For every Rs.50,000/- for which solvency certificate is required a sum of Rs.50/-should be remitted in the Treasury to the credit of 0029 LR other receipts.

b)  The Revenue Inspector should enquire, on the applicant's request the Village Administrative Officer and the public and record their statements, and more particularly examine the following:

i)     Whether he is a resident of the address mentioned in the application.

ii)   Whether the properties are in his name independently or jointly with others. If jointly the share of the applicant with reference to the records should be assessed. Village accounts should be verified.

iii)  Solvency Certificate is only for immovable properties and not for movable like Motor Car, etc.

iv)  Encumbrance certificate for 13 years should be obtained. Any mortgage or other similar action in the Nationalised Bank does not find place in the certificate. Proper enquiry with reference to the original documents should be conducted.

v)   The guideline value for the land and the structural value certified to by a registered Engineer for the buildings can be considered. The value of structure should be on the basis of scheduled rates prescribed by PWD.

vi)  Personal Inspection of properties by the Tahsildar/Deputy Tahsildar in case of reasonably higher amount is advisable.

vii) If there is a mortgage or loan on the property the amount due on the said mortgage/loan can be deducted from the total value before issuing the certificate. (CRA's D.Dis.Q.19147/96, dated 17.12.1996).

c)   Enquiry records, interalia, should consist of:

i)            Rs.50/- chalan for every Rs.50,000/-

ii)           Documentary evidence to prove the ownership

iii)         Encumbrance certificate in original obtained from the Sub-Registrar's office for 13 years on the property.

iv)         Property Tax receipt or Land Revenue Receipt.

v)           Estimate prepared by a qualified Engineer and Chitta.

vi)         Copies of Village 'A' Register, Adangal and Chitta.

vii)        Statement from the applicant/Villagers and the Village Administrative Officer.

viii)       Guideline value to determine the value of the land.

d)   The Tahsildar should satisfy himself and issue the certificate within 15 days. If the certificate could not be issued, the reasons for rejection should be specified and communicated to the applicant.

e)   While issuing solvency certificate, the officials shall be more vigilant and take all precautionary measures to avoid defects.

f)    The solvency certificates issued to the Forest contractors should be countersigned by the District Revenue Officers. This can be done after verification wherever needed.

g)   Collectors/District Revenue Officers should undertake random check of solvency certificates to eliminate malpractice in their issue.

h)   The files relating to the issue of solvency certificate should be closed as K.Dis.

i)     The Solvency Certificate shall be valid for six months from the date of issue.

Govt. Lr.No.39745/V2/80-1, Revenue, dated 30.4.1980 BP.Rt.2553(Q) dated 9.6.1980.

G.O.Ms.No.2065, Revenue, dated 6.10.1976.

G.O.Lr.No.61671/VI/74-6, Revenue, dated 21.9.1974.

CRA's Lr.Q2/93386/88, dated 23.1.1990

CRA's D.Dis.Q/19147/96, dated 17.12.1996.

G.O.Ms.No.97, Revenue, dated 15.2.1994.

Source:- Revenue Manual.

How to Obtain Solvency Certificate

1. Whom to apply : To the Tahsildar concerned.
2. How to apply :Application to be made in the prescribed form Affix Court Fee Stamp of Rs.10/- on the application
3. What documents to attach : Xerox copy of ownership documents
1. In case of flat :
1. a) Xerox copy of share certificate issued by the society
2. b)Societies letter stating that:
1. The flat is free from all incumbrances
2. The flat is on ownership basis
3. Area of the flat in sq.ft./sq.mtr
4. Duration of stay of member
5. The flat is free from litigations & incumbrances
3. Xerox copy of Ration Card/Telephone Bill/Electricity Bill
4. Affidavit on Rs.20/- stamp paper stating that :
1. The flat is free from all incumbrances attachment, acquisition, mortgage etc.
2. Area of the flat in sq.ft./sq.mtr
3. The flat is free from litigations
2. In case of land:
1. a) Xerox copy of conveyance deed duly attested
2. b) Xerox copy of assessment bill
3. c) Affidavit on stamp paper of Rs.20, stating that:
1. i)The land is free from all incumbrances, attachment, acquisition, mortgage etc.
2. ii) No litigation is pending in Court of law
3. iii) Survey. No., Revenue Division and area of the land