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If home buyer sentiment needs another solid reason to inch higher, we think there's no need to look any further.
Making Transparency Mandatory
Maharashtra's real estate watchdog, MahaRERA, has made it compulsory for all housing project developers to make their project's mortgage status known to the authority and FYI, there are no exceptions.
A builder mortgaging the same housing project to multiple banks in order to raise more funds illegally is not uncommon in our country.
And if this compliance is seen through, the sector will witness some much needed improvement in hygiene.
A CIBIL For Real Estate Projects - CERSAI
Cersai (Central Registry of Securitisation Asset Reconstruction and Security Interest of India 😅), has been maintaining the central registry that records the filing of security interest of immovable, movable, intangible properties by lenders.In short, when a builder takes out a loan on a new housing project or a land parcel, the transaction is recorded at the Cersai servers and can be accessed by other lenders running a credit check on the builder or its projects/land.
Fraud Prevention Is The Priority
Availability of such records can 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.
CERSAI has also been entrusted with the responsibility of operating and maintaining a Central KYC Record Registry (CKYCRR), which started operating from 2016.
This helps track money laundering among other things.