A recent press report said that the RBI has sets up Central Registry in order to prevent property loan frauds. The records maintained by the by the Central Registry will be available for search by any lender or any other person interested in dealing with the property. It is believed that the availability of such records would prevent frauds involving multiple lending against the security of same property.
Reports said that the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)-a government company licensed under the Companies Act.1956, has been incorporated to operate and maintain the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
The 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, will be registered in the Central Registry.
Mr.R.V. Verma, chairman and managing director, National Housing Bank, which offers wide range of home loan, has been given additional charge as the registrar of the Central Registry for three months, and he will also be the managing director and CEO of CERSAI.