PROPERTY-CENTRAL REGISTRY NOTIFICATION

Section 21 of the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 – Central Registry – Central Registrar – Notified place at which Central Registry is established

NOTIFICATION NO. GSR 277(E), DATED 31-3-2011

In exercise of the powers conferred under section 21 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Central Government hereby notifies the establishment of the Central Registry at the place mentioned in Column 2 of the Table below which shall exercise jurisdiction in the area specified in the corresponding entry in Column (3) of the said Table, namely:—

TABLE

Sl. No.	Place at which the Central Registry is established	Area of Jurisdiction
(1)	(2)	(3)
1.	Indian Banks’ Association, Delhi Local Chapter C/o Punjab National Bank, Rajendra Bhavan, Rajendra Place, New Delhi-110008.	Whole of India

2. The Central Government hereby, entrusts the operations and administration of the Central Registry and the Maintenance of the Central Register to a Government Company licensed under section 25 of the Companies Act, 1956, namely, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, having its Registered Office at the place mentioned in Column 2 of the above given Table.

3. The Central Registry shall be under the superintendence and direction of the Central

Sl. No.	Place at which the Central Registry is established	Area of Jurisdiction
(1)	(2)	(3)
1.	Indian Banks’ Association, Delhi Local Chapter C/o Punjab National Bank, Rajendra Bhavan, Rajendra Place, New Delhi-110008.	Whole of India

Registrar appointed by the Central Government under sub-section (1) of section 21 of the Securitisation and Reconstruction of Financial Assests and Enforcement of Security Interest Act, 2002.

Central Registry of properties is operational to avoid multiple loans on the property

The Central Registry for Properties Operationalised

The Central Registry of Securitisation, Asset Reconstruction and Security Interest of India, A Government Company, Incorporated to prevent fraud on lending money on properties

The Central Registry has become operational with effect from today i.e.31st March,2011. The objective of setting-up the Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry Of Securitisation Asset Reconstruction And Security Interest Of India, a Government Company, licensed under Section 25 of the Companies Act, 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002). The Central Registry shall be under the superintendence and direction of the Central Registrar. Notifications for establishment of the Registry to be operated and maintained by the above company and for the purpose of appointment of Central Registrar have been issued by the Government today i.e. 31st March, 2011.

The Chairman and Managing Director, National Housing Bank shall hold additional charge as the Registrar of the Central Registry for a period of three months and he shall also be the Managing Director and Chief Executive Officer of the Government Company incorporated for the purpose of operating the Registration System.

Initially 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, are to be registered in the Central Registry. The Forms for registration and the fees for filing registration particulars as well as for taking a search in the Central Registry have been prescribed by Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011. The said Rules have been notified on 31st March, 2011. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. 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.

A central database of security interests created over property as well as assignment of such security interest by way of securitisation or asset reconstruction would make the secured lending activity in the financial market safer for the lenders. This would enthuse the secured creditors to provide credit to the productive sectors to help sustain the growth momentum of the Indian economy.