The Hindu Business Line : Tool to scan database of `litigation' properties

AS banks attempt to recover the assets of defaulters, they find that a good number of properties have litigations that were not disclosed at the time of lending.

According to the banking industry experts and senior officials of the Reserve Bank of India, the commercial banks embraced housing loans as a major portfolio fuelled by the enthusiasm of aggressive recovery through the new legal instrument - Securitisation Act.

The industry experts say that more than 70 per cent of the properties in the country - land or buildings or flats or plots - are under either registered or simple mortgage to one bank or the other, either as primary or collateral securities.

It has been the common experience among banks that the enforcement of securities proved difficult even with a facilitating law.

According to the Managing Director of the Hyderabad-based Sandilya Consultants, Dr B. Yerram Raju his company has developed a risk mitigation instrument called `Infact' with the help of an exhaustive database of public legal notices published in leading newspapers.

It has compiled the data on litigations from 1990 onwards and organised it using highly sophisticated software. An advocate of the Andhra Pradesh High Court, Mr Turaga Anil Kumar, conceived the idea of mitigating at least a few of the risks relating to litigations published in the newspapers, Dr Raju said.

According to Dr Raju, the data can be instantly retrieved and presented in various formats.

Currently available for the twin cities of Hyderabad and Secunderabad, the service would be extended to other cities across the country, he said.

According to him, enquiry can be made for a particular year or number of years depending upon the need of the concerned agency.

More Stories on : Housing Finance | Software | Courts/Legal Issues

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Oil uncertainty hits markets

Rupee up 4 paise; securities weak

Tool to scan database of `litigation' properties

LPG connection finance scheme from United Bank

Amway to market life insurance products

FIIs holding in ICICI Bank falls

SBT hikes NRE deposit rates

StanChart open to subsidiary route

StanChart feels the heat of card defaults