INTRODUCTION
In a recent judgment the Supreme Court has highlighted the importance of title search reports in preventing property related disputes and ensuring seamless property transactions the supreme court has called the reserve bank of india and other stake holders to create a standard framework for the transactions relating to the property so that the property of the puplicare safe and to prevent any other fraudulent and misleading activities.
BACKGROUND
This issue arose because there is no rules relating to the title search of the property .Banks doesnot have any standard form of title search mechanism and they rely upon the reports made by the empanelled lawyers which doesnot gurantee any accuracy and quality relating to the search. Due to lack of proper report the loans were sanctioned upon the disputed properties resulting into Legal and Financial challenges sometimes these reports are influenced by the external factors which leads to the fraudulent transactions and compromise the security of the public funds.
KEY POINTS
- Emphasis on robust title search : robust title search ensures the verification of property ownership so that no adverse claim exist on that property and will ensure in tackling of the fraudulant transaction.
- To maintain ethical standard : The court recommended the mechanism to determine the liability of the bank officials who recommend the loans based upon the externally influenced search report , and also to start criminal action against such gross negligence.
RECENT DEVELOPMENTS
The supreme court Bench recently realized that a loan sanctioned against the property whose title dispute ws not resolved . the court realized that if a robust title search were done then then this matter would not have been arose .The bank also realized that the bank rel on the cheaply prepared report , so the court highlighted a robust mechanism has to be made so that these type of issue relating to fraudulent activities and misleading title report would not be created .
CONCLUSION
This Judgement has strengthen and has created a urge to the reserve bank of india along with the stake holders to create the robust mechanism for the title search,and to make a guideline for the report preparation , cost mechanism , and to create a ethical environment for the employees and made them liable for these type of property related loan transactions in India.
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WRITTEN BY: PRINCE KUMAR
