If you think it is easy to bypass the rules and
take multiple loans from different lenders on a property, beware! A central registry to prevent such frauds has become operational from 31 March 2011.
The Central Registry of Securitisation Asset Reconstruction and Security Interest of India, a government company, has been incorporated for the purpose of operating and maintaining a central database of mortgaged properties.
Tips Investing in realty? Why you should check property rates first Finance minister Pranab Mukherjee had announced the plan to set up such as a registry in his budget speech for 2011-12.
Initially, transactions related to securitisation and reconstruction of financial assets and those related to property mortgages through deposit of title deeds have to be registered in the central registry. The database will be available for search by any lender or person desirous of dealing with the property.
Analysis: Which is better? Being an owner or a tenant "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," the Reserve Bank of India said in a statement.
