CENTRAL ELECTRONIC REGISTRY UNDER THE SARFAESI ACT 2002

CENTRAL ELECTRONIC REGISTRY UNDER THE SARFAESI ACT 2002
Government of India, Ministry of Finance has notified the establishment of the Central Registry. The objective of setting up of Central Registry
is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry of
SRuritisation Asset Reconstruction and Security Interest of India (CERSAI), 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 SARFAESI Act.
initially transactions relating to securitization 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 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.