Now, banks can apply for e-khata to sell mortgaged properties

To resolve the challenges faced by banks and financial institutions, the Bruhat Bengaluru Mahanagara Palike (BBMP) has released a module to apply for e-khata to carry out the sale of mortgaged properties. 

To resolve the challenges faced by banks and financial institutions, the Bruhat Bengaluru Mahanagara Palike (BBMP) has released a module to apply for e-khata to carry out the sale of mortgaged properties. 

Under the Securitisation, Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002, the banks sell mortgaged properties due to failure of loan repayment by the borrower. The sale is executed through the sale certificate. As the government on October 1 mandated e-khata for land transactions and registration of deeds, the banks encountered problems in selling mortgaged properties. 

Speaking with The Hindu, BBMP Special Commissioner (Revenue) Munish Moudgil said, “We have released a module for the banks and financial institutions to secure e-khata. The changes have been made on the existing e-khata website and the banks can start applying for the e-khata.” 

According to the module document accessed by The Hindu, the banks have to first login to the citizen module and identify the property based on the ePID or name or search options. Later, the bank has to enter the property tax number of SAS. 

The banks should then select a new updated option ‘do not have registered deed’ for recording the banks’ or financial institutions’ names based on the sale certificate. The banks have to upload the original sale certificate, registered deed in favour of owner, registered mortgage deed in favour of bank by the owner, authorisation letter in favour of person duly authorised and encumbrance certificate. 

To carry out eKYC, the banks have to select ‘add new owner’ option, complete the eKYC of the representative authorised by the bank based on Aadhaar. Then the representative of the bank has to choose ‘property in the name of organisation option’ to enter the institution’ name. 

After completion of the application process, a caseworker in the Revenue department will verify the documents first. Under the recommendation tab, they have to select the option ‘mutation based on bank/financial institutions for sale certificate’ to write remarks.