Biggest Banking fraud disclosed in Union Budget

Biggest Banking fraud disclosed in Union Budget
By Dr Sanjay Chaturvedi

Housing is state subject. Inspite of that Finance Minster had mooted to establish Central Electronic registry under the SARFAESI Act, 2002.

Many banks actually have converted personal loans and credit card credits into home loan in their books and had asked the subsidy offered by government on housing loans below Rs. 20 lakh and now its is Rs.25 lakh.

To prevent such practices, Finance Minster wants such authority which actually takes the toll on housing finance.

Since housing is a state subject, FM must have asked state to establish such authorities. As of now 90% of land and property records are already computerised. What we require a system just like Car loans, where RC books gets a entry of mortgage.

Inspite of this, Finance Minister has provided for the Registry and that too in a rush having deadline of 31st MArch 2011.

To prevent frauds in loan cases involving multiple lending from different banks on the same immovable property, the Government has facilitated setting up of Central Electronic registry under the SARFAESI Act, 2002. This Registry will become operational by March 31, 2011.

Banking sector brining in funds from Germany, Japan and other countries on 4% p.a. for housing finance purposes and have never passed on the advantage of cheap funds to the actual consumer.

Inspite of many financial helps and provisions, bankers are behaving like SAHUKARS.