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Document Authenticationfor 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.
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© 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
USABilcare Inc.300 Kimberton Road Phoenixville, PA 19460+1 610 422 3305
Europe
UKBilcare Technologies Malvern Hills Science Park, Geraldine Road,Malvern, WR14 3SZ, United Kingdom+44 (0) 1684 585 257
ItalyBilcare Technologies Italia SrlPresso Veneto Nanotech, Via San Crispino 106,35129 Padua, Italy+39 (049) 7705514
Asia
IndiaBilcare Ltd.601, ICC Tower, B Wing, Pune 411 016+91 (20) 30257700
SingaporeBilcare Technologies Singapore Pte. Ltd.52 Changi South Street 1, Singapore 486161+65 63954130
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
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
• Forgedsaledocuments,whichappear genuine to buyers
• ForgedPowerofAttorney(POA) and impersonation during registration
• Doublesaleofpropertybyconcealing facts
• Multiplemortgagingofasingle 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.
• Nofoolproofdocument/stampinstrument authentication mechanism during registration
• Currentregistrationsystemoffers no assurance to the title beyond the seller’s claims
PROBLEM PROBLEM
• Sellingplotsonaninstallmentbasis to buyers, but registering the same property to another person who makes a one-time payment.
• Lackofanefficientwayforbuyers to verify property credentials and ownership history
• Inefficienciesinthepropertytransaction process
• ItisachallengeforBankstoverify mortgage clearances through Encumbrance Certificates as equitable mortgages are not registered
• Governmentvaluationsarenotin 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
nonClonableID™ LABEL WITH BAR CODE
Modular Solution - End-To-End Functional View
State Treasury District Treasury Sub Treasury Banks / PO
Stamp paper labelingand commissioning
Stamp paper activationbefore dispatching
Labeling,commissioning and
activation of label onfranked / e-stamped
instrument
Stamp paper receipt event capture through authentication
(packaging hierarchy)
Label status update withdispatch details to sub treasuries
Label status update with stamp paper issuance to
banks / PO or agents
Stamp paper receipt eventcapture through authentication
(packaging hierarchy)
Stamp paper authenticationduring sale to citizens
LicensedAgents
Registered document security, card issuance and authentication
Stamp Instrument Tracking and Authentication
Registered POAdocument labeling
after POAregistration
Sale deed documentlabeling after registration
Property registrationcard authentication
for due diligencewhenever citizens / banks avail service
Sale deedauthentication for due
diligence whenevercitizens / banks
avail service
Card label linking toregistered document
and activation
Cardprinting
POA authenticationbefore registration
Sub Registrar Office
Sub RegistrarOffice
Stamp instrument (stamp paper, franked / e-stamped instrument)
authentication beforePOA (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• Securitizedsaledeedand
Power of Attorney• Stampinstrumentsecurity
and authentication• Securitizedproperty
registration cards• Documentmanagement
and secure retrieval• Single-pointdue
diligence service• Reportingandexceptionalerts• Linkedownership
transfer transactions
• Tamper-evidentlabels alerting the recipient (Sub Registrar Office (SRO)) of any document/stamp instrument authentication failure
• Enablesthetrackingofdocuments/stamp papers to prevent theft, misuse and diversion
• Enabletheregistrationpersonnel 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.
STEP 1 - The nonClonableIDTM card fingerprint or document label is swipedusing Bilcare’s reader.
STEP 3 - Post-authentication, govermment information is retrieved againstthe card. This information will be hosted at Bilcare’s site.
STEP 2 - The nonClonableIDTM card fingerprint or document label isauthenticated at the Bilcare server.
BILCARE READER
Authentication server housing
nonClonableIDTM
fingerprints at Bilcare
PROPERTYOWNER
REGISTRATION AT SRO
Server housingthe registration details at the
SRO level - localto SRO office
BROADBANDINTERNET
LANUSBGovemment server
housing the registration details
- local at the SRO level
DOCUMENTSCANNER
CARD PRINTER
BILCARE READERAuthentication server housing
nonClonableIDTM
fingerprints at Bilcare
ISSUE OF REGISTRATION CARDS
PROPERTYOWNER
Label stamp papers with Bilcare
nonClonableIDTM
fingerprints
BROADBANDINTERNET
LAN USB
Bilcare supplies blank nonClonableIDTM
ID cards and labelsfor stamp paper
documentsREGISTRATION AT SRO
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
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
• Strengthensthesystemofguaranteeing ownership rights
• Reducespropertyrelatedfraudand document forgery.
e-Governance • Servesasa‘one-stop-shop’
due diligence service point to verify transactions and ownership history
Citizens (Bona fide property owners/potential buyers)• Securitizedownership
document providing foolproof ownership rights on the property
• Convenienceincarryingoutdue diligence on the property before buying
• Assuranceofpaymentofstamp duty on original stamp instruments
• Avoidbeingdupedbyfraudsters through sale of property using fake registration papers.
• Provideseasyandsecureaccess to retrieval of authentic registration data through a secure key
• Providesownershipidentitythrough identity-based property registration cards.
Minimize Revenue Losses• Disincentivizestheevasion
of registration of property transactions
• Plugslossesfromsale/useoffake stamp instruments
Department of Registration and Stamps• Enhancesthesanctityandtrust
of the registered document as ‘proofofownership’
• Improvesefficiencyindue diligence and citizen orientation of the property registration service
• Reducestampdutyandregistration fee evasion / leakage
Additional Revenue Stream• Additionalrevenuestreamfor
the Registration Department through the property due diligence service without any investment.
• Documentauthenticationand 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• Preventmultiplemortgaging
of property through fake registered documents
• Fasterandeasierverificationprocess for loan sanctioning
10 11
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