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RD (CA)     16 January 2012

Registration of mortgage with central registry-sarfaesi act

I have the following Questions regarding Registration of Mortgage by Bank with Central Registry constituted under SARFAESI Act, 2002.

1. Is it compulsory for a Co-operative Bank to register details of properties mortgaged with it on or after 31st March, 2011 with the above authority?

2. The said rules contain provision for condoning delay up to 30 days in registration of the mortgage. What if the delay is beyond 30 days? Is there any procedure to register details of mortgages after 60 days (30 days' time limit + 30 days' condonation)?

3. What if there is no provision enabling filing of details after 30 days?

Kindly reply ASAP and thaking in advance



 15 Replies

RAJU O.F., (Advocate)     16 January 2012

If the bank wanted to proceed under SARFAESI, then only registration in Central Registry is compulsory.  If they opt other modes of recovery , eg. for filing suit in Court, such registration is not necessary.  Amendments to the SARFAESI Act was submitted in the Parliament, which includes matters concerning registration.  But we have to wait till the bill is passed.

Vijayalekshmi Omana (Administrator)     22 January 2012

As of now Banks are registering property details with CERSAI as soon as the deposit of title deed is made. The site is to be revamped soon. Let us hope the procedures are simplified after revamp.

Vijayalekshmi Omana (Administrator)     22 January 2012

It is not correct that banks only register with CERSAI only if they want to proceed under SARFAESI since the registration has to be done within 30 days of deposit of title deeds for securing a loan.

RAJU O.F., (Advocate)     22 January 2012

Registration of security interest in Central Registry is applicable under SARFAESI Act only. If the banker do not wish to invoke the provisions of SARFAESI Act, then such registration is unnecessary and hence waste.  Assume bank had granted loan of Rs.1 crore as agricultural loan/commercial loan, against security of agricultural property, then registration in Central Registry is waste, since enforcement of security interest in Agrl. properties, is exempted, please note.  Even otherwise, the bank can decide the mode of recovery, in case of need.

Vijayalekshmi Omana (Administrator)     23 January 2012

Banks do register mortgage by deposit of title deeds of immovable property with CERSAI. The very first page of the form for uploading the details in CERSAI asks you to create charge and in the drop down menu of 'Asset Type' there is only one option namely "Immovable Property". It does not differentiate agricultural property. In the page of uploading descripttion of property also, the term 'agricultural property' is not found. A financial asset includes any beneficial interest in property whether movable or immovable in the Sarfaesi Act. What I understood from CERSAI is that it is only meant to keep a register of all mortgages by deposit of title deeds. And no where we can find the definition of the term 'agricultural land', 'agricultural property', 'agricultural purpose' in the legislation. CERSAI is not meant for the purpose of enforcement of security interest. It is only a platform for compulsory registration of all mortgages with banks and Co-operative banks of immovable property. Section 31[i] which excludes the provisions of Sarfaesi Act to agricultural land is only meant in the case of Enforcement of security interest. In such case the bank can have other options. Even if an agricultural loan is granted for agricultural purpose and mortgage of agricultural land is there CERSAI has to be done as registration of mortgages is compulsory. Dont get confused by registration in CERSAI with Enforcement under Sarfaesi. Even in future the legislation strictly forms a specific provision in that regard, first it has to define what is agricultural land and there also must be a mechanism to know whether it is used for agricultural purpose. Then also in the future after availing loan it can be converted for other purpose. So it doesnt mean that bank cannot initiate SARFAESI Action only because at the time of granting the loan the land was agricultural and it was not registered with CERSAI.

RAJU O.F., (Advocate)     26 January 2012

Although I do not agree with the above comment, I am not for any disputes in this regard.

T V RAAO (SERVICE)     21 March 2012

The portal is very slow and users find it very difficult to feed the data. The portal managers should provide upload format exce/csv, for uploading bulk records

RAJU O.F., (Advocate)     22 March 2012

The extended time for registering security interest in Central Registry is getting over  by 31-03-2012.  Regarding the necessity of registration in Central Registry, each one is interpreting in his/her own way, since the law is not settled yet, on this point. Bankers also are in the dark.

Vijayalekshmi Omana (Administrator)     02 June 2012

The time is extended till June 30, 2012.

RAJU O.F., (Advocate)     05 June 2012

In the notification from Ministry of Finance dated 13-04-2012 the secured interest over properties created  on or before 31-03-2011 and still subsisting can be registered with the Central Registry till 30-06-2012, without charging any fee.  It is also clarified that filing of such information is optional for secured creditors.  Please refer to my earlier posts in this thread.

c.p.s. ramachary (1500)     30 July 2012

Dear Mr. Raju O.F.

Registration of security interest is made initially applicable to    transactions relating tosecuritization 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.  

See the Press Note given by RBI on 21.04.2011

 DBOD.Leg. No.BC. 86/09.08.011 /2010-11
April 21, 2011

All Scheduled Commercial Banks / Financial Institutions
(Excluding RRBs).

Dear Sir,

Setting up of Central Electronic Registry under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002

Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12, Government of India, Ministry of Finance 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. This Registry has become operational on March 31, 2011. The Central Registry of Securitisation 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 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

2. It may be noted that 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. It may be noted that under the provisions of Section 23 of the SARFAESI Act , particulars of any charge creating security interest over property is required to be filed with the Registry within 30 days from the date of creation.

3. A copy of the Securitisation and Reconstuction of Financial Assets and Enforcement of Security Interest (Central Registry)Rules, 2011 along with a copy of Notification dated March 31, 2011 issued by the Government in this regard, is enclosed for necessary action at your end.

Yours faithfully,

Chief General Manager

Encl: As above

According to the above press release, mortgages other than equitable mortgage is not are not specified.


Uday (Lawyer)     09 August 2012

Dear Ramachary Sir, Can you please refer an advocate who has good knowledge to file section 14 cases in Vijayawada.

c.p.s. ramachary (1500)     10 August 2012

Mr. K.L.N. Prasad advocate at Vijayawada is senior lawyer for banks. You can avail his services.

shyam ji srivastava (PRACTICING LAWYER)     20 April 2015

Dear All Members



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