Pilot Project for Registering All Properties Would Begin Before March 2013 : R. V. Verma, NHB

At a time when the Indian real estate sector is struggling with issues related to transparency, the scope of the existing central registry on properties is being expanded by including those with no attached loans. Now, only housing and mortgage loan linked properties are being put in the registry.

 Mr.R. V. Verma,  Chairman, National Housing Bank (NHB),  said, ''A pilot project for registering all properties would begin before March 2013. It will start with states already having an e-registry platform"

Details of All Properties..!

The RBI (Reserve Bank of India), in a notification on May 19, 2011, had announced operation of a central registry, meant to have details of all properties against which loans had been taken.

A Central Electronic Registry of Securitisation Asset Reconstruction (CERSAI) was incorporated to operate and maintain it.

“We had meetings with the governments of Uttar Pradesh, Maharashtra & West Bengal ” said Mr. R. V. Verma, who is also the central registrar and Heads CERSAI.

This is basically to go beyond properties on which loans had been taken. A task force is being set up to launch a pilot project to bring in all properties under a central registry.

40 Lakh Transactions Recorded..!

Within a year of operation, the central registry now has 40 lakh transactions recorded. Of these, 29 lakh are of those on which loans had been taken before March 2011 and 11 lakh are of those where loans were taken after March 2011.

The information is presently available only to institutions. But would soon be open to the all public. CERSAI are working on a mechanism for that.

Meanwhile, the finance ministry had given an extension of 3 months to banks and HFCs (housing finance companies) for providing information & details of subsisting mortgage. Earlier, the deadline was March 31, 2012 and had been extended to June 30, 2012.

Realty frauds to be checked..!

Now, the central registry has details of encumbered properties &  plot of land against which a loan has been taken, with only the loan values recorded.

Mr. R.V. Verma, also said,'' By the next 6 months or so, the value of the property or land will be recorded by the registry..

The move is expected to help state governments, lender communities like banks & HFCs and also the borrower. Once the information is in the public domain, real estate frauds are expected to be checked.

Source: Business Standard

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