New CERSAI Rules notified; All kind of Mortgages to be registered with CERSAI
Central Government has notified new CERSAI Rules on 22nd January 2016.
All Mortgages need to be registered
According to old Rules, only the secured creditors are required to file particulars of only equitable mortgages with CERSAI. But as the new amendment has come into forceall kind of Mortgages needs to be registered with CERSAI. Newly inserted Rule 2A reads ‘“(2A). Particulars of creation, modification or satisfaction of security interest in immovable property by mortgage other than mortgage by deposit of title deeds shall be filed in Form I or Form II, as the case may be, and shall be authenticated by a person specified in the Form for such purpose by use of a valid digital signature”
Other mandatory registrations
The Rules also says that charge on Hypothecation of Plant & Machinery, Book Debts receivables, Charge on Intangible Property are required to be registered with CERSAI, which were not required earlier as per the old Rules.The Fee are also drastically reduced.
Central Registry of Securitisation Asset Reconstruction and Security Interest of India is a company licensed under section 25 of the companies act, 1956 and is registered by the Registrar of companies, New Delhi.
The company is a Govt company with a shareholding of 51% by the Central Govt and selected public sector banks and national housing bank are also the shareholders of the company.The object of the company is to maintain and operate a Registration system for the purpose of registration of transactions of securitization, asset reconstruction of financial assets and creation of security interest over property.
Read the Full text of the rules here.