Document Authentication for Properties
1 like296 views
Bilcare Technologies has developed a nonclonableID™ label for document authentication to combat property fraud, particularly in India, where issues like forged title deeds and multiple mortgages are prevalent. The solution aims to enhance security and efficiency in the property registration process, providing a transparent ecosystem for verifying ownership and related documentation. This technology not only safeguards ownership rights but also minimizes government revenue losses from fraudulent transactions and improves the reliability of property dealings.
Document Authentication for Properties
- 1. Document Authentication for Properties nonClonableIDTM LABEL WITH BARCODE Bilcare Technologies is a division of Bilcare Ltd. focused on creating next-generation anti-counterfeiting, security, and brand protection solutions for a broad range of industry sectors. With breakthrough research in nanotechnology, Bilcare has developed a unique technology-nonClonableID™- that enables documents to be authenticated as they move between stakeholders. elephantdesign.com © 2010, Bilcare Ltd. All Rights Reserved. All product names, and logos mentioned herein are the trademarks or reg- istered trademarks of Bilcare. No part of this document should be circulated, quoted, or reproduced for distribution without prior written approval from Bilcare Ltd. www.bilcaretech.com tech@bilcare.com Americas USA Bilcare Inc. 300 Kimberton Road Phoenixville, PA 19460 +1 610 422 3305 Europe UK Bilcare Technologies Malvern Hills Science Park, Geraldine Road, Malvern, WR14 3SZ, United Kingdom +44 (0) 1684 585 257 Italy Bilcare Technologies Italia Srl Presso Veneto Nanotech, Via San Crispino 106, 35129 Padua, Italy +39 (049) 7705514 Asia India Bilcare Ltd. 601, ICC Tower, B Wing, Pune 411 016 +91 (20) 30257700 Singapore Bilcare Technologies Singapore Pte. Ltd. 52 Changi South Street 1, Singapore 486161 +65 63954130
- 2. Fraud and illegal transactions Fake registered documents The Property Sector boom in India and the resulting exponential growth in registration volumes have also led to an increase in property related fraud and fake/illegal transactions. A 2006 report by the Reserve Bank of India (RBI) indicates that submission of fake documents to procure housing loans is a rampant practice in the property sector. This is attributed to the sharp rise in housing loan fraud. In fact, the National Housing Bank (NHB), a subsidiary body of RBI has flagged up submission of forged title documents for gaining housing loans and Multiple Financing as “HIGH” severity fraud in their Fraud Circular to all HFCs and Banks. The menace of fake title deed documents has also had significant impact on the Banking and Housing Finance sector. Title deed documents (which are a necessary requirement for banks to sanction property loans) are faked by individuals in order to gain loans for illegally acquired properties/unauthorized properties. Moreover, this method of faking registered sale deed documents is a common practice for gaining multiple loans from different banks, as the original sale deed is retained by the bank that sanctioned the first loan. PROBLEM PROBLEM 02 03
- 3. Ownership issues Revenue loss to government and mortgaging banks Document forgery/fraud and violations in the property sector have resulted in many ownership issues embroiled in legal tangles. Fraudulent practices in the property sector also cause significant losses to governments in terms of lost registration fees and stamp duty. Modus operandi adopted by fraudsters to perpetrate fraudulence • Forged sale documents, which appear genuine to buyers • Forged Power of Attorney (POA) and impersonation during registration • Double sale of property by concealing facts • Multiple mortgaging of a single registered property by producing fake property documents This fraud, and consequent revenue loss, is facilitated by inadequate authentication mechanisms and the following kinds of structural loopholes in the complex property registration system. • No foolproof document/stamp instrument authentication mechanism during registration • Current registration system offers no assurance to the title beyond the seller’s claims PROBLEM PROBLEM • Selling plots on an installment basis to buyers, but registering the same property to another person who makes a one-time payment. • Lack of an efficient way for buyers to verify property credentials and ownership history • Inefficiencies in the property transaction process • It is a challenge for Banks to verify mortgage clearances through Encumbrance Certificates as equitable mortgages are not registered • Government valuations are not in line with fast rising property prices. There is a strong need to curb fraudulent property transactions and bring in security and efficiency capabilities into the property registration and ownership due diligence process. 04 05
- 4. nonClonableID™ LABEL WITH BAR CODE Modular Solution - End-To-End Functional View State Treasury District Treasury Sub Treasury Banks / PO Stamp paper labeling and commissioning Stamp paper activation before dispatching Labeling, commissioning and activation of label on franked / e-stamped instrument Stamp paper receipt event capture through authentication (packaging hierarchy) Label status update with dispatch details to sub treasuries Label status update with stamp paper issuance to banks / PO or agents Stamp paper receipt event capture through authentication (packaging hierarchy) Stamp paper authentication during sale to citizens Licensed Agents Registered document security, card issuance and authentication Stamp Instrument Tracking and Authentication Registered POA document labeling after POA registration Sale deed document labeling after registration Property registration card authentication for due diligence whenever citizens / banks avail service Sale deed authentication for due diligence whenever citizens / banks avail service Card label linking to registered document and activation Card printing POA authentication before registration Sub Registrar Office Sub Registrar Office Stamp instrument (stamp paper, franked / e-stamped instrument) authentication before POA (Power of Attorney) / property registration Labeling / commissioning and activation of label on franked / e-stamped instrument The nonClonableID™ advantage Authentication-based security SOLUTION SOLUTION Solution Features • Securitized sale deed and Power of Attorney • Stamp instrument security and authentication • Securitized property registration cards • Document management and secure retrieval • Single-point due diligence service • Reporting and exception alerts • Linked ownership transfer transactions • Tamper-evident labels alerting the recipient (Sub Registrar Office (SRO)) of any document/stamp instrument authentication failure • Enables the tracking of documents/stamp papers to prevent theft, misuse and diversion • Enable the registration personnel to authenticate the registered sale deed / source of stamp instrument in real-time Aimed at curbing fraudulent property transactions, the solution also helps the State Governments to plug registration and stamp duty revenue losses. 06 07 The nonClonableID™ label is a unique, materials-based fingerprint consisting of randomly distributed particles and cannot be reproduced even by Bilcare. Through authentication-based security of registered documents using nonClonableID™ labels , Bilcare’s Document Security and e-Governance Solution addresses the structural inefficiencies to create a transparent property transaction ecosystem.
- 5. STEP 1 - The nonClonableIDTM card fingerprint or document label is swiped using Bilcare’s reader. STEP 3 - Post-authentication, govermment information is retrieved against the card. This information will be hosted at Bilcare’s site. STEP 2 - The nonClonableIDTM card fingerprint or document label is authenticated at the Bilcare server. BILCARE READER Authentication server housing nonClonableIDTM fingerprints at Bilcare PROPERTY OWNER REGISTRATION AT SRO Server housing the registration details at the SRO level - local to SRO office BROADBAND INTERNET LANUSB Govemment server housing the registration details - local at the SRO level DOCUMENT SCANNER CARD PRINTER BILCARE READER Authentication server housing nonClonableIDTM fingerprints at Bilcare ISSUE OF REGISTRATION CARDS PROPERTY OWNER Label stamp papers with Bilcare nonClonableIDTM fingerprints BROADBAND INTERNET LAN USB Bilcare supplies blank nonClonableIDTM ID cards and labels for stamp paper documents REGISTRATION ATSRO STEP 1 - Registration done as per the process - documents scanned and saved in a folder at SRO (Sub Registrar Office) server. STEP 4 - Stamp paper documents are labeled with Bilcare nonClonableIDTM fingerprints. STEP 2 - The nonClonableIDTM card is swiped and gets activated. The barcode number of the card is linked with the folder at the SRO server. STEP 3 - Blank nonClonableIDTM card is customized, printed and issued. How it works Efficiency in due diligence The property sales deed document will be securitized at the time of registration and a secure property registration card will be issued, providing convenience and ownership identity to the property owner. This solution also provides an efficient due diligence service for property buyers/banks with the nonClonableID™ fingerprint serving as a secure key to access ownership details and related documents. SOLUTION SOLUTION The solution can also be extended to securitizing stamp instruments used for payment of stamp duty and can be offered as a modular solution with an additional stamp paper tracking and authentication capability. 08 09
- 6. REGISTRATION AT SRO OFFICER BILCARE READER PROOF OF OWNERSHIP VERIFICATION DOCUMENT Transparent property transaction ecosystem Multiple security and efficiency capabilities Bilcare’s solution will provide several direct benefits to different stakeholders involved in the property transaction lifecycle. BENEFITS BENEFITS Authentication-based Security of Registered Documents • Strengthens the system of guaranteeing ownership rights • Reduces property related fraud and document forgery. e-Governance • Serves as a ‘one-stop-shop’ due diligence service point to verify transactions and ownership history Citizens (Bona fide property owners/potential buyers) • Securitized ownership document providing foolproof ownership rights on the property • Convenience in carrying out due diligence on the property before buying • Assurance of payment of stamp duty on original stamp instruments • Avoid being duped by fraudsters through sale of property using fake registration papers. • Provides easy and secure access to retrieval of authentic registration data through a secure key • Provides ownership identity through identity-based property registration cards. Minimize Revenue Losses • Disincentivizes the evasion of registration of property transactions • Plugs losses from sale/use of fake stamp instruments Department of Registration and Stamps • Enhances the sanctity and trust of the registered document as ‘proof of ownership’ • Improves efficiency in due diligence and citizen orientation of the property registration service • Reduce stamp duty and registration fee evasion / leakage Additional Revenue Stream • Additional revenue stream for the Registration Department through the property due diligence service without any investment. • Document authentication and due diligence of property ownership would be based on a per transaction service fee (shared between Build-Own- Operate-Transfer operator and Government). Mortgaging Banks • Prevent multiple mortgaging of property through fake registered documents • Faster and easier verification process for loan sanctioning 10 11