The Government today set up a Central Registry to prevent fraud in loan cases involving multiple lenders on the same immovable property.

"Setting up of a Central Registry will enable creation of a database which will provide information about mortgage property across the country to banks, housing finance companies and public at large", National Housing Bank (NHB) Chairman and Managing Director R V Verma, who has also been appointed as registrar, said.

Any new housing loan given by banks and housing finance companies will have to be reported to the Central Registry within 30 days of origination of the mortgage, he said.

The immovable property would include housing, commercial real estate to begin with, Verma said, adding, the scope and ambit of the Registry would be enhanced in due course of time.

This Registry would also enable public to make online search of any property to ascertain whether it is charge-free or not. The information can be obtained by an individual by paying a fee of Rs 50 for a single search.

Availability of such records would prevent frauds involving multiple lending against the security if same property as well as fraudulent sale of property without disclosing security interest over such property, Verma said.

A central database of security interest created over property would enthuse the secured creditors to provide credit to the productive sectors to help sustain the growth momentum of economy.

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India is set up with Government of India having 51 per cent stake while remaining 49 per cent is with the NHB and 10 banks.

The Registry has been established under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002.

Banks and housing finance companies would have to report fresh mortgage to the Registry in a prescribed format for which rules under the SARFAESI Act have been framed.

In the Budget speech for 2011-12, Finance Minister Pranab Mukherjee had announced that the Central Registry would be operationalised by March 31, 2011.