By IANS,
New Delhi : In a bid to prevent fraudulent loans, transactions using property as collateral for obtaining loans from banks or financial institutions will now be documented with a central registry, a statement said Thursday.
“The Central Registry has become operational with effect from today,” the finance ministry said in a statement.
In his budget speech, Finance Minister Pranab Mukherjee had announced that the registry will be set up by March-end.
“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 statement said.
The Central Registry Of Securitisation Asset Reconstruction And Security Interest Of India has been incorporated for the purpose of operating and maintaining the Central Registry.
R.V. Verma, chairman and managing director of National Housing Bank, will hold additional charge as the registrar of the central registry for three months.