Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011 - Amended
SECTION 58 of Transfer of Property 1882, recognizes different forms of creation of mortgage, of which the Mortgage by Deposit of title deeds is the most popular form of creation of Mortgage. The existing SARFAESI(Central Registry) rules stipulate the registration of security interest created over assets through Mortgage by deposit of title deeds only. The Act in addition to the mortgage by deposit of title deeds, also recognizes other forms of mortgages like Simple Mortgage, Mortgage by conditional sale, Usufructory Mortgage and English Mortgage. However hitherto Central Registry has not mandated the registration of security interest created in other forms of mortgage (other than mortgage by deposit of title deeds).
Now the Government vide notification dated 22 nd January 2016, issued by Department of Financial services (Ministry of Finance) has mandated the registration of mortgages created over secured interest by other forms of mortgage i.e. other than Mortgage by Deposit of title deeds. These amended rules cover secured interest created over immovable property, movable property, intangible assets like patents, copy rights, goodwill etc, prescribing the procedure and also the fees payable. The amended rules are also mandate that the existing security interest on assets should also be registered with the Central Registry without payment of fee till a date to be notified.
F. No. - Recovery dated January 22, 2016