The Central Registry for Properties Operationalised to avoid multiple lending on the same property
The Central Registry of Securitisation, Asset Reconstruction and Security Interest of India, A Government Company, Incorporated to prevent fraud on lending money on properties
The Central Registry has become operational with effect from today i.e.31st March,2011. The objective of setting-up the Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry Of Securitisation Asset Reconstruction And Security Interest Of India, a Government Company, licensed under Section 25 of the Companies Act, 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002). The Central Registry shall be under the superintendence and direction of the Central Registrar. Notifications for establishment of the Registry to be operated and maintained by the above company and for the purpose of appointment of Central Registrar have been issued by the Government today i.e. 31st March, 2011.
The Chairman and Managing Director, National Housing Bank shall hold additional charge as the Registrar of the Central Registry for a period of three months and he shall also be the Managing Director and Chief Executive Officer of the Government Company incorporated for the purpose of operating the Registration System.
Initially transactions relating to securitisation and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by Banks and “Financial Institutions,” as defined under the SARFAESI Act, are to be registered in the Central Registry. The Forms for registration and the fees for filing registration particulars as well as for taking a search in the Central Registry have been prescribed by Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011. The said Rules have been notified on 31st March, 2011. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property.
A central database of security interests created over property as well as assignment of such security interest by way of securitisation or asset reconstruction would make the secured lending activity in the financial market safer for the lenders. This would enthuse the secured creditors to provide credit to the productive sectors to help sustain the growth momentum of the Indian economy.
15 thoughts on “Central registry for properties to avoid fraud is operational”
It is quite good move by GOI. Looks our government does not want to be far behind other western countries. Looking forward for more details in nearby future regarding this. Thanks for letting us know about this.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011-where can one get a copy of these Rules?
The copies will be available with the central gazette.
Do you have the copy of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011.
Alchemist Asset Reconstruction Company Limited
does every property E.m. Requie registration.
Is this is operational? If yes, what is the process or web link for searching / registartion, fee etc
There is no weblink. It is for Banks and financial institutions.
As per article – the Central Registry will be available for search by any lender or any other person desirous of dealing with the property
How the process will work. To whom a bank need to submit the information.
It is for the banks, as of now.
It has started on 1-4-11 and the banks will submit the details for the central registry. More details are not available.
Thanx a Lot for all the information…
We sought the details from the Central Registry and as it is a newly constituted body, could not access to more details and it provides service only to the banks and it cannot provide all the details to everyone, who is not concerned with the property. As and when the details are available, it will be published.
how can check the property in central registery system and which site available for the same
As of now, it is only available for financial institution and is still in infancy stage.
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