A Central Registry has now come into being to help prevent frauds in loan cases involving multiple lending from different banks on the same immovable property.

Putting in place a Central Registry by March 31 was a Budget proposal announced by the Finance Minister, Mr Pranab Mukherjee.

A Government company on a non-profit basis has been set up for operating the registration system. The Budget proposal has now been operationalised, Mr R.V. Verma, Chairman and Managing Director, National Housing Bank, told reporters here.

It (central registry) would also be one big step towards releasing potential of securitisation and asset reconstruction markets in India, he added.

Mr Verma will hold additional charge as the Registrar of the Central Registry for a period of three months. He has also been appointed as the Managing Director and Chief Executive Officer of the Government company — The Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

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 institution are to be registered in the central registry.

In future the scope of mandatory central registration could also extend to security interest of movable properties, said Mr M.R. Umarji, Chief Advisor-Legal, Indian Banks' Association.

Meanwhile, the Finance Ministry has notified the forms for registration and the fees for filing registration particulars as well as for taking a search in the central registry.

>krsrivats@thehindu.co.in

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