Legal scrutiny has been conceived to minimize the fraudulent and dubious transfers of properties, Dual Loans, Sale of properties with Encumbrances and Multiple Loans. We provide you with the perfect platform to upload the mortgage information, so that the public can search the mortgage or charge. This unique search method will aid in avoiding double loans, fake transactions, Sale of properties with litigation and the like.

What is Multiple Loan or Double Loan or Fraudulent Transfers?

There can be only one loan on a property. If there has to be Second charge on the property, it should be with the consent of the first Creditor (Bank) and the Second creditor will have the right to realize the assets only on the satisfaction of the debts(loan) of the First creditor. Generally, fraudsters create multiple transactions on the same property with the help of forged title deeds or security document.

These cases are detected by CBI in the case of Public Sector Banks. CBI has filed a number of cases with regard to these kind of fraudulent practices. A similar number of cases are found in the Private Sector Banks as well. But the Private Sector Banks will not reveal this information to the general public as they stand to lose public confidence.

What is the magnitude of the fraud?

Information collected by the CBI, the Central Investigation body, tracks frauds valuing only up to a Crore rupees and above. Such frauds have doubled in 2008-09 from Rs 659 Cr in2007-08 to Rs 1,404 Cr. It is estimated that the Banking Sector has reported over to Rs 400 Cr. home loan frauds. The individuals who lost their money due to such fraud is almost equal.

Who are the Victims of fake transactions?
Victims of fraudulent mortgage or transfer of properties are generally:
Public Sector Banks
Financial Institutions
Individuals who have not taken sufficient care to verify the title.

What are the defects in the existing system?

The existing system does not contain a platform from where all the transactions in respect of a given property can be notified. At present, property data is currently available only in the office of the Sub-Registrar. But here you can only source property details as per the documents registered. In the case of unregistered mortgage the sub-registrar will have no details. In a plethora of cases the Investigation agency has found that though such documents are registered before the Sub-Registrar they turnout to be fake, as no such property exists. Therefore it is in the interest of financial Institutions and prospective buyers of the property to verify the title as best they can and thoroughly.

The basic common-law principle is that an individual cannot pass better title than he/she has and a buyer can acquire no better title than that of the seller. Because a thief does not have a title to stolen goods, a person who purchases from the thief does not acquire title.

How does Legal Scrutiny help in prevention of fraudulent transfers?

Legal Scrutiny has generated certain modules which will work as part of the fraud prevention process. These modules will help in prevention of the fraudulent transaction over a property, availing multiple loans.