The Central Electronic Registry (CER), an entity promoted by the National Housing Bank (NHB), will keep track of all mortgages in the home loan market.
Fraudsters would soon find it difficult to raise multiple loans against the same property.
The Central Electronic Registry (CER), an entity promoted by the National Housing Bank (NHB), will keep track of all mortgages in the home loan market. In future, when a borrower seeks to avail of a loan against a house, the lender will be able to verify from the CER whether anyone has already got charge of the property.
A majority of home loan frauds pertain to borrowers raising multiple loans using forged documents. In some cases, the fraud is perpetrated by the developer who sells an apartment under construction to two different buyers. Earlier this month, DNA had reported about a PIL filed by advocates who raised the issue of flats being sold to multiple buyers as the registration department failed to maintain and update sale deeds.
NHB officials said the fraud also extends to sale/purchase of land. “The objective behind the CER was to develop an electronic platform for posting of data and information relating to asset finance like mortgage. It will contain details of property like location, survey number, status (lien or any to any bank), free or securitised to any bank,’’ said RV Verma, executive director, NHB.
The banking sector estimates the size of home loan frauds at over Rs400 crore.
All banks and housing finance companies will provide data on title deeds and home loan borrowers to the CER.
Next time a bank processes a home loan proposal, it will first verify with the central registry if the title deed is clear and not registered in any other entity’s name, or if any other bank has taken it as a security.
As of now, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act in India has enabled a provision to set up a CER. It is learnt that nearly 10 banks, mostly in the public sector, have picked up stakes in the CER, which has received a budgetary provision of Rs25 crore from the central government.
While the CER will currently be accessible only by banks and financial institutions, the common public will be able to access the website only after a few months.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}