iFinancier

Problem of similar assets in CERSAI

<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div style="text-align: justify;">
Cersai eventhough developed into Phase Two, do not address some common issues. In this post I am trying to bring into light the problem of similar assets which always pop up as an error.</div>
<div style="text-align: justify;">
A person having a very vast area under one plot/survey number may transfer parts of his property to different persons under different documents in different times. While such a transfer, the plot/survey number in all documents remains the same. He cannot change it. Only the extent, boundaries differs. The real problem arises when we enter such a property in Cersai. The present search system of CERSAI seems to corner around plot/survey number to detect multiple transactions. If CERSAI detects plot number/survey </div>
<div style="text-align: justify;">
number which is already registered with it, it throws an error. CERSAI will not see whether the subsequent transfer is of another part of property of the same survey number. Boundaries are also not made important fields in the site. So genuine transactions are also coloured as fraudulent and multiple ones by CERSAI.</div>
<div style="text-align: justify;">
However, there are certain tips and tricks to avoid the errors of CERSAI in such cases. You cannot change the survey/plot number. But you can definitely change the way of entering it.For instance 543/12 is the survey number of a plot which contains larger extent of property. The prior owner transferred a part of that property and it has already been registered with CERSAI. Later he transferred other part of the same survey number. This when going to be registered with CERSAI, change it by adding some space </div>
<div style="text-align: justify;">
before or after the oblique. Otherwise, you can write the number descriptively. For eg:sub division 12 of Survey 543. This will ensure that you can finally register the transaction. Knowing this tip is extremely important as in some cases CERSAI will ask us to delete the entire transaction and register a new one. </div>
<div style="text-align: justify;">
This problem is a big one and it needs to be addressed soon by CERSAI. It must also detect the boundaries and document number, the extent and other factors to verify if a transaction is duplicate or multiple or fraudulent one. We can hope for a better interface and data collection in the future. Till then, share your valuable views on the post. Thank you.</div>
</div>

Problem of similar assets in CERSAI

Cersai eventhough developed into Phase Two, do not address some common issues. In this post I am trying to bring into light the problem o...

Pitfalls in Phase Two of CERSAI

<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
In the earlier version of CERSAI we will be getting an Asset ID which can be used in future for correction, modification and satisfaction of the loan/property transaction details.</div>
<div style="text-align: justify;">
Now in Phase Two, we should note the Security Interest ID which are given to us on successful confirmation of transaction. If we noted only the Asset ID like we used to in the Phase One, it will not be possible for us to use it for future transactions like correction, modification and satisfaction. CERSAI will give the message that such a Security Interest ID is not registered with the system.</div>
<div style="text-align: justify;">
The site only asks the Security Interest ID for correction,modification and satisfaction. There you have to give the security interest ID and not the Asset ID. If you give the Asset ID, the system will throw error messages. Any how there are certain measures which can be used to for noting the Security Interest ID:</div>
<ol align="justify" style="text-align: left;">
<li><div>
 Make a register of your own noting the Institution, Branch, Borrower, Property details, loan details etc. There should be space for writing Queue Reference Number, Transaction Date, Security Interest ID and Asset ID.</div>
</li>
<li><div>
 Note down in your register the Security Interest ID and Asset ID after successful confirmation of Queued Transaction.</div>
</li>
<li><div>
 Download Challan after successful confirmation of Queued Transaction. This is a shortcut method for storing the Security Interest ID. The Challan or Security Receipt will show the Transaction Reference Number, Asset ID, Security Interest ID and other details.</div>
</li>
</ol>
<div style="text-align: justify;">
Since the system of CERSAI is new and the launched website/database is still lacking perfection and may contain bugs to be fixed, a systematic approach to every finished transaction is required to prevent the pitfalls.</div>
</div>

Pitfalls in Phase Two of CERSAI

In the earlier version of CERSAI we will be getting an Asset ID which can be used in future for correction, modification and satisfaction ...

Borrower co-owner with thirdparty-CERSAI

In CERSAI provision is made for entering the details of third party who is mortgaging the property. If you select Property owner as '...

Need for modification-Property details tab in CERSAI

Property details page can be accessed through 'Property Details' tab in CERSAI. This is the only page where you will find 'Lo...

Problem of Partnership Firm as Borrower in CERSAI

<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div style="text-align: justify;">
<span style="background-color: white;">A  partnership firm may or may not have property of its own. Sometimes, the partners may have properties which may be mortgaged to the Bank for securing a loan. We are now dealing with the case of third party mortgages, ie. neither the firm nor its partners are mortgaging their respective properties or they are not having such properties to be mortgaged. So it is clear that we are dealing with a third party mortgage.</span></div>
<div style="text-align: justify;">
The anomaly can be seen when we enters details in the Borrower/s tab in CERSAI.If there is a sole borrower ie. the partnership firm the details asked by the site are as follows:</div>
<div style="text-align: justify;">
When we select 'Partnership Firm' as the 'Borrower Type' the site asks the Partnership Firm Name and Name of the authorised person/partner who is signing the papers on behalf of the firm. Here we can enter the person so authorised by the partnership deed or as mutually agreed by the partners.</div>
<div style="text-align: justify;">
The real problem comes when there are two borrowers. Say one is an individual/partner of the firm who has taken a loan on the same security property of third party. The site allows adding multiple borrowers. We selected individual first as the Borrower type. We entered details of the individual. Then for adding the partnership firm, we clicked 'Add Borrower' button and selected Partnership Firm in Borrower Type of Borrower 2. There you will find that the site is asking for the name of the partner who is mortgaging the property belonging to the Partnership firm. We will have to take this by surprise since the partnership firm is not mortgaging its property how could we enter these details.</div>
<div style="text-align: justify;">
This is a problem of the site. I hope the developers correct this thing immediately.But there is a solution for this. Whenever there are more than one borrowers and a partnership firm is one of the borrower and it is not mortgaging any of its properties, you have to add the details of firm as Borrower 1. Then go to the second borrower. If you enter the name of the partnership firm first, the site will not ask for name of the partner who mortgages the property. If you have accidentally selected individual or any other as Borrower 1 and then selected Partnership as Borrower2, then you can't revert. Even if you delete the Borrower 1, then also the site will ask Name of the partner who is mortgaging the property. So you will have to start afresh. To avoid this always care when uploading details in CERSAI with multiple borrowers and having Partnership firm as one borrower.</div>
</div>

Problem of Partnership Firm as Borrower in CERSAI

A partnership firm may or may not have property of its own. Sometimes, the partners may have properties which may be mortgaged to the Ba...

What is new in Cersai Phase Two?

<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Arial, Helvetica, sans-serif; text-align: justify;">Central Registry of Securitisation Asset Reconstruction and Security Interest of India is a company licensed to register all securitisation transactions. Phase I of Cersai has been very difficult, especially when coupled with the slow response of server. We have to navigate to every individual page without a chance of going back to the previous page. There was a time limit for the session also. If you do not enter the informations within a specified period of time, the page will stop and you will be redirected to the homepage.</span><br />
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">In the new Cersai We could see that there is a change in the interface.After entering the user id and password we enter the home page. In your left handside we could see the link for adding security interest.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">Now we will have to choose certain Yes or No radio buttons.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">The first question is whether the security interest correspond to an immovable financial asset. The second question is whether the security interest correspond to a non-agricultural financial asset. This is a new feature which was absent in the previous version. If we enter agricultural asset, we will not be permitted to proceed further. The third question is whether the financial asset is under joint security interest or consortium agreement. After selecting all this we have to select certain details from a drop down box. This specifies the nature of the property.Seven categories are included in this. If we select plots, three check boxes viz plot number, state and pin code will appear. if we select buildings,another check box namely house number also will appear.Please note that if we do not check these boxes, the page will not proceed since these are the mandatory requirements.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">Some of the new changes in the newest form of Cersai is as under:</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Addition of tabs</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">Now there are ten tabs in the homepage of Phase II cersai while there were only eight in the old one. The new tabs are Cersai Circulars and Verify signed files. Till the time of publishing this post, there were no released circulars. In the second tab, we can browse and verify files by uploading data files and signature files.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Adding Security Interest afresh and on existing asset.</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">A notable development which erased many anomalies and questions associated with the old version(Phase I) is addition/creation of security interest afresh and upon an existing asset.We can choose between the two. Correction and modification is still possible.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Pages</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">There are seven pages in total for entering the details. These pages can be accessed through seven tabs which provides easy navigability. This feature enables us to go back to any previous page. There is no NEXT button in each page. After entering the details(either in part or full) we can move to another page by clicking the respective tabs. Thus it is more convenient now. The tabs are viz Borrower, Third Parties, Nature of Security Interest, Security Interest Holder, Property Details, Property Documents and Loans.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Increased speed and time limit</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">The new version of Cersai has extended time limit for entering the details. It wont expire even if you go at a slow pace. This is a new improvement. Perhaps they have upgraded their server.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Correction Indicator</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">If the information entered in any tab(page) is not correct or required information are not given, then the tab colour changes to red from grey. If all the information are correctly given then the tab colour changes to green from grey.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Submit Button</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">There will be a submit button at the end tab page. When you click the submit button you will be getting a Queue Reference Number. This is the evidence for entering the details by the maker. Now the checker has to approve this. So a message shows in this regard.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Conclusion</b></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">The very convenient improvement which I notice in the new Cersai is the possibility to move to every page by clicking the tabs. This is a great relief. Note that still it got the 'Other details' space. So you can add additional details in this space at the last tab page.</span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">There is still so much to be improved in the new Cersai and hence I am temporarily stopping this post. Thanks for reading. Share your comments please.</span></div>
</div>

What is new in Cersai Phase Two?

Central Registry of Securitisation Asset Reconstruction and Security Interest of India is a company licensed to register all securitisation...

Registration of Mortgages with Cersai by Banks

<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div style="text-align: justify;">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).</div><div style="text-align: justify;">As per the directive of the Sarfaesi Act, the CERSAI was set up vide Government notification and it is now located in New Delhi.</div><div style="text-align: justify;"><b><i>Registration Process.</i></b></div><div style="text-align: justify;">After every mortgage of immovable property, the details has to be registered with the CERSAI by going to the website <a href="http://www.cersai.org.in/">www.cersai.org.in</a> 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.</div><div style="text-align: justify;"><b><i>Important Details</i></b></div><div style="text-align: justify;">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.</div><div style="text-align: justify;"><b><i>Time limits and Fees</i></b></div><div style="text-align: justify;">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.</div><div style="text-align: justify;"><b><i>Priority of Charges</i></b></div><div style="text-align: justify;">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.</div><div style="text-align: justify;">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.</div></div>

Registration of Mortgages with Cersai by Banks

Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act(hereinafter referred as Sa...