Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act(hereinafter referred as Sarfaesi Act) directs the Central Government to set up a Central Registry for the purpose of registration of every transaction of securitisation and reconstruction of financial assets and creation of security interest under the Sarfaesi Act. In plain words, every mortgage of immovable property for securing a loan is to be registered with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (hereinafter referred as CERSAI).
As per the directive of the Sarfaesi Act, the CERSAI was set up vide Government notification and it is now located in New Delhi.
Registration Process.
After every mortgage of immovable property, the details has to be registered with the CERSAI by going to the website www.cersai.org.in after remitting prescribed fees. This has to be done within thirty days of creation of mortgage by deposit of title deeds. You may need to enter the borrower's name, his details, property details, loan details, guarantor's details etc. After successfully submitting the informations you will get an Asset ID. This should be saved for future modification of transactions. The officers of the Banks need a member user identification number and password to enter the website.
Important Details
PIN code or ZIP code of the domicile address of the borrower, guarantor, charge holder/bank, registry of title deeds, property etc is needed. Permanent Account Number is mandatory. In case of absence of PAN numbers, a dummy PAN number can be used. Account Number is also important. Like wise the limit of loan, survey number of property, extent, date of registration of title deed etc is important. Taluka, Tehsil, District, State etc are important. The borrowers' name is important. There are so many things which I may discuss in another post. Non-mandatory things like Date of Birth of borrower, guarantor, their phone numbers etc is also there.
Time limits and Fees
The registration of every transaction of mortgage should be done within thirty days. Otherwise you will be required to pay additional fee for registration. The fee limit for loans below five lakh rupees are two hundred and fifty rupees and for limits more than five lakhs, the fee is five hundred. This is same in the case of future modification also.For condonation of delay, the fee limits are two thousand five hundred for limits below five lakh rupees and five thousand for limits above five lakh rupees.
Priority of Charges
The registration in Cersai will not affect the existing charge created over the property by operation of other enactments. This is clearly stated in Section 20 of the Sarfaesi Act.
CERSAI is going to be revamped. So things may change. I may have to put another post in that regard. Till that time, enjoy my blog. Thanks.
WE CAME TO KNOW THAT OLD MORTGAGE CAN BE REGISTERED WITH CERSAI FOR LIMITED PERIOD. WE WANT TO KNOW, WHAT IS THE TIME PERIOD, TO REGISTER OLD MORTGAGE.
ReplyDeletetime is extended till june thirty
DeleteWill this Help in avoiding the registration of equitable mortgage? Thus saving some Money for the borrower. Nowadays banks insist on such registration and borrower has to shell out 0.5% of loan amount as registration charge .
ReplyDelete