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    CERSAI Registration

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    kunalsinha5906
    CERSAI (Central Registry) was established under the SARFAESI Act of 2002 to prevent fraud by registering security interests in immovable property. The Act requires that details of securitization, asset reconstruction, or security interest creation be filed with CERSAI within 30 days, along with a fee. Amendments in 2016 expanded registration to other types of security interests and made registration mandatory. Failure to comply can result in fines or imprisonment.

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    CERSAI Registration

    Uploaded by

    kunalsinha5906
    236 views3 pages
    CERSAI (Central Registry) was established under the SARFAESI Act of 2002 to prevent fraud by registering security interests in immovable property. The Act requires that details of securitization, asset reconstruction, or security interest creation be filed with CERSAI within 30 days, along with a fee. Amendments in 2016 expanded registration to other types of security interests and made registration mandatory. Failure to comply can result in fines or imprisonment.

    Original Description:

    Registration of Charges with CERSAI

    Original Title

    CERSAI Registration (1)

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    CERSAI (Central Registry) was established under the SARFAESI Act of 2002 to prevent fraud by registering security interests in immovable property. The Act requires that details of securitization, asset reconstruction, or security interest creation be filed with CERSAI within 30 days, along with a fee. Amendments in 2016 expanded registration to other types of security interests and made registration mandatory. Failure to comply can result in fines or imprisonment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    236 views3 pages

    CERSAI Registration

    Uploaded by

    kunalsinha5906
    CERSAI (Central Registry) was established under the SARFAESI Act of 2002 to prevent fraud by registering security interests in immovable property. The Act requires that details of securitization, asset reconstruction, or security interest creation be filed with CERSAI within 30 days, along with a fee. Amendments in 2016 expanded registration to other types of security interests and made registration mandatory. Failure to comply can result in fines or imprisonment.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CERSAI (CENTRAL REGISTRY) has been established under section 20 of the

    SARFAESI Act, 2002.

    The Objective of CERSAI is to prevent fraud loans cases involving multipler lending
    from different banks on the same immovable property.

    Section 23 of the SARFAESI Act requires for filing of transactions of securitisation,


    reconstruction and creation of security interest:-

    The particulars of every transaction of securitisation, asset reconstruction or creation of


    security interest shall be filed, with the Central Registrar in the manner and on payment
    of such fee as may be prescribed, within thirty days after the date of such transaction or
    creation of security, by the securitisation company or reconstruction company or the
    secured creditor, as the case may be:
    PROVIDED that the Central Registrar may allow the filing of the particulars of such
    transaction or creation of security interest within thirty days next following the expiry of
    the said period of thirty days on payment of such additional fee not exceeding ten times
    the amount of such fee.

    This process has again been reiterated in Rule 5 of the SARFAESI (Central Registry) Rules 2011
    that each financial institution has to register a security transaction with central registry system
    within thirty days of the creation of charge / securitization.

    The 2016 amendment to the CERSAI Rules 2011 has made it necessary for all the financial
    institutions/lenders/creditors to file for the registration of the charge/transaction of any type in
    respective forms.

    The Amendment to Rule 4 of 2011 Rules (which was earlier only for equitable mortgage):-

    (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.
    (2B). Similar Rule for interest in hypothecation of plant and machinery, stocks, debt including
    book debt or receivables.

    (2C). Similar Rule for interest in intangible assets, being knowhow, patent, copyright, trade
    mark, licence, franchise or any other business or commercial right of similar nature.

    (2D). Similar Rule for interest in any under construction residential or commercial building or a
    part thereof by an agreement or instrument other than by mortgage.

    THE EFFECT AFTER AMENDMENT:- Now creation of interest/charge in any of the above
    transactions requires to be registered within 30 days with CERSAI.

    The Amendment to the Rule 5 of the 2011 Rules

    (b) In rule 5, sub-rule (1), ---

    (ii) after the second proviso, the following provisos shall be inserted, namely:- Provided also
    that particulars of all subsisting transactions under sub-rule (2A) to (2D) of rule 4 shall be filed
    by the secured creditors with the Central Registry on or before such date as may be specified by
    the Central Government and no fee shall be payable on such filing till the said date.

    Provided also that particulars of all subsisting transactions filed with the Central Registry after
    the date so specified shall be chargeable with such fee, specified in the Table under rule 7.

    THE EFFECT AFTER AMENDMENT: The proviso to Rule 5 has been added in line with the
    amendment to Rule 4.
    Other Important Provision of SARFAESI ACT:

    Section 23. Filing of transactions of securitisation, reconstruction and creation of security


    Interest.

    Section 24. Modification of security interest registered under this Act

    Section 25. Securitisation company or reconstruction company or secured creditor to report


    satisfaction of security interest.

    PUNISHMENT FOR NON-COMPLIANCE (under SARFAESI ACT)

    Section 27. Penalties.If a default is made

    (a) in filing under section 23, the particulars of every transaction of any securitisation or asset
    reconstruction or security interest created by a securitisation company or reconstruction company
    or secured creditor; or

    (b) in sending under section 24, the particulars of the modification referred to in that section; or

    (c) in giving intimation under section 25,

    Every company and every officer of the company or the secured creditor and every officer of
    the secured creditor who is in default shall be punishable with fine which may extend to five
    thousand rupees for every day during which the default continues.

    Section 29:- Offences. if any person contravenes or attempts to contravene or abets the
    contravention of the provisions of this Act or of any rules made thereunder, he shall be
    punishable with imprisonment for a term which may extend to one year, or with fine, or with
    both.

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