CHENNAI : Banks must take steps to register mortgaged properties, which would put on alert prospective purchasers, Justice K. Gnanaprakasam, Chairperson of the Debts Appellate Tribunal (DRAT), has said.

Inaugurating the newly-formed Debts Recovery Tribunal-III here on Wednesday, he said that at present equitable mortgage was not reflected in encumbrance certificates issued by registration offices. People buying mortgaged properties come to know of the encumbrance only when the property is put up for sale, he said, adding that banks must register mortgaged properties even if it involved a small expenditure.

The Judge also called upon the Tamil Nadu Government to emulate its counterpart in Maharashtra in bringing in an amendment necessitating banks to register mortgaged properties.

Mr. Justice Gnanaprakasan pointed out that the each of the DRTs in Tamil Nadu had more than 1,000 cases before them, and said the Tribunals were functioning with inadequate staff strength. There was a staff shortage — at all levels — including recovery officers, he said.

The outstanding dues of banks and financial institutions in the country had crossed the Rs. 2 lakh crore-mark, he said, adding that the borrowers were duty-bound to return the public money. Unless the dues were realised, sanction of fresh loans would be hit, he said. Presiding Officer of DRT-III G.P. Motwani, Chairman and Managing Director of the Indian Overseas Bank T.S. Narayanasami and Chairman and Managing Director of Indian Bank K.C. Chakrabarty spoke.

The first DRT in Tamil Nadu was established in 1996. The DRT-II came into existence in March 2001. Besides the three DRTs in Chennai, the State has a DRT each in Coimbatore and Madurai. The DRT-III here shall have jurisdiction over Perambur-Purasawalkam taluk limits of Chennai, besides the districts of Chengalpattu, Tiruvallur, Vellore, Villupuram, Cuddalore, Tiruvannamalai, Pudukottai, Thanjavur, Tiruvarur, Nagapattinam, Perambalur and Dharmapuri.

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