It is governed by the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and licensed under the Companies Act, 1956. Concentrating on the topic, i.e., CERSAI, this article attempts to elaborate its major aspects like its background and procedure of functioning. The writer will also brief about its registration process and requirement of registration fee and CERSAI charges. Further, the writer will narrate the pathway to use the database by using provided search engine. Moving towards the end, the writer will end this article with some safety measures which could be helpful for prospective investors.
Objective behind CERSAI
To stop the practice of taking multiple loans from various financial sectors on the same property, the government passed CERSAI Act, 2002 (Act) to maintain transparency in borrow & lending transactions. With the CERSAI portal, lenders/buyers like Banks, Housing Finance Companies (HFCs), Non-Banking Finance Companies (NBFCs), etc., can check the history of properties the borrower claims a loan. Thus, before making any purchase/mortgage, a person can cross-verify about the mortgaging property whether it has any previous security interest attached with the property or not. After considering the restate market, this imitative has added great value to minimize botheration pertaining to property dealings.
Official Website of CERSAI
Streamlining abovesaid objective CERSAI and Credit Information Bureau India Limited (CIBIL) is continuously updating batch files which have the strength to upload a maximum of 1000 records weekly. Besides this, as per CERSAI regulations, all banks/HFCs/NBFCs have to submit details of their property-related activities in the CERSAI database within 30days from the transaction are done. In case of non-compliance, a monetary penalty is imposable on the defaulter further. For abovesaid compliance, the banks/HFCs/NBFCs are authorized to collect ‘CERSAI charge’ from their customer.
Using CERSAI Portal: Registration Process & Function
When it comes to going into the verification/validation process, it can be done only after registration with CERSAI. For which interested entity has to fill electronic registration form underneath in ‘Entity Registration’ option given on the CERSAI website. After filling required details with Digital Signature Certificate (DSC) or Central Know Your Customer Record Registry (CKYCRR) and paying current CERSAI registration charges, the user can submit the form. It is pertinent to note that the process will not be completed until; user submits the hard copies of the acknowledgment form and the desired document with the CERSAI office. With successful registration with the CERSAI portal, any registered user can log in and search for a background check of a particular property on which he is planning to invest money by way of mortgage or purchase, etc. This search engine plays a vital role in discarding chances of any fraud investment or illicit dealings, which may result in huge financial loss.
Conclusion
From the above discussion, it is clear that CERSAI has provided a common public portal available for registered users for accessing the valuable database for cross verifying the encumbrance/liabilities attached with the subjected property. Understand this mechanism; the writer is pleased to mention that the CERSAI portal is a boon for prospective investors who have broken major hassle faced by them. Adding one more point for protecting the new investor from website spoofing, it is advisable to visit https://cersai.org.in/CERSAI/home.prg without doing a random Google search.