Monday, March 26, 2012

NEED FOR REGISTERING MORTGAGES


NEED FOR REGISTERING MORTGAGES

Mortgage by deposit of title deeds (equitable mortgage) provided by section 58(f) of the Transfer of Property Act, 1882 is not required to be registered and there is no requirement of recording any written document for creation of such mortgage.

Taking advantage of this situation, a number of frauds have taken place by depositing multiple documents of title relating to the same property.

CERSAI REGISTRATION
Details of all the Equitable Mortgages by deposit of tiltle deeds are required to be registerd with CERSAI

Introduction - CERSAI


Introduction - CERSAI

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) contains provisions for setting up a Central Registry for registration of transactions relating to

ü  Securitisation of Financial Assets,
ü  Reconstruction of Financial Assets and
ü  Creation of Security Interest.

As stipulated in SARFAESI ActCentral Registry of Securitisation Asset Reconstruction and Security Interest of India - CERSAI ( www.cersai.org.in) was registered under is Companies Act, 1956 as a Section 25 company New Delhi on 5thMarch 2011.

The Company is a Government Company with a shareholding of 51% by the Central Government and select Public Sector Banks and the National Housing Bank are also shareholders of the Company.

The Registration would be applicable to transactions of security interest over property created to secure loans and advances from the banks and financial institutions as defined under the SARFAESI Act.

The Company is providing the platform for filing registrations of transactions of securitisation, asset reconstruction and security interest by the banks and financial institutions.

Any person can also search and inspect the records maintained by the Registry on payment of fees prescribed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011. 

About CERSAI


About CERSAI

CERSAI is a Government company licensed under section 25 of the Companies Act, 1956 having its Registered Office at New Delhi.

The company incorporated with majority shareholding of the Central Government, Public Sector Banks and National Housing Bank for the purpose of operating a Registration System under the provisions of Chapter IV of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (SARFAESI Act).