**Sample PDF of the Affidavit is attached at the end.
Why this Affidavit is Used
- To declare ownership of property and its market value before the authorities.
- To certify that the person is financially sound/solvent and not in debt or default.
- To support applications where financial credibility is mandatory (government contracts, tenders, bail, surety, business licences, etc.).
When It is Used
- While applying for a Solvency Certificate from the District Magistrate/Revenue Department.
- For government tenders or contracts to prove financial capacity.
- When standing as surety in court (for bail or other cases).
- For business/trade licences, dealership allotments, or bank-related guarantees.
- Sometimes for study abroad visas (where state govt. solvency certificates are accepted).
Purpose
- To show proof of financial strength backed by immovable property.
- To assure the government/authority that the person is capable of meeting liabilities.
- To confirm that the property is unencumbered (no mortgage, loan, or dispute).
- To legally bind the person not to sell or hypothecate the property during the validity of the solvency certificate.
FAQs
-
Q1. What is a solvency certificate?
-
It is a certificate issued by the District Magistrate/Revenue Authority certifying that a person has enough property/assets to meet financial obligations.
-
Q2. Who needs a solvency certificate?
-
Contractors; bidders in tenders; court sureties; businessmen; or students (in some cases abroad).
-
Q3. What documents are required with this affidavit?
-
Property papers, a property valuation report, tax receipts, ID proof, and sometimes an encumbrance certificate.
-
Q4. How long is a solvency certificate valid?
-
Usually 1 year (varies by state rules).
-
Q5. Is an affidavit alone enough for solvency?
-
No. The affidavit is only a supporting document. The final solvency certificate is issued by the competent authority after verification.
-
Q6. Can I use movable assets (like bank deposits) for a solvency certificate?
-
Yes, but in such cases a different format is used. This affidavit is specifically for property-based solvency.
-
Q7. What if I sell the property after obtaining a solvency certificate?
-
That violates the affidavit undertaking. It can lead to the cancellation of the solvency certificate and legal action.
Downloads & Resources
Legal Affidavit Document
PROFORMA OF AFFIDAVIT FOR OBTAINING SOLVENCY CERTIFICATE ON THE BASIS OF PROPERTY
Affidavit of Sh. ___ S/o ___, R/o ___, Distt./State ___, do hereby solemnly affirm and declare as under:
- That I am the absolute owner of property no. ___ OR that I am a partner of ___% in property no. ___, and the market value of my above-mentioned share/property is Rs. ___.
- That the property as mentioned above is free from all encumbrances.
- That I undertake neither to sell the above-mentioned property nor to hypothecate it in any manner so long as the Solvency Certificate remains in force.
- That I have not stood surety for anyone in any court in Delhi or outside Delhi.
- That I am an Income Tax payee and assessed with the Dy. Commissioner of Income Tax ___. PAN: ___
- That I have never been convicted of any bailable or non-bailable offence and I owe nothing to the Government as revenue or in any other form.
Deponent
Signature: ___
Name: ___
Address: ___
Mobile: ___
VERIFICATION
Verified at Delhi, this ___, that the contents of the above affidavit are true and correct to the best of my knowledge and belief and nothing has been concealed therein.
Deponent
Signature: ___
Name: ___

Add new comment