KP Sharma  

A person cannot mortgage the same plot of land multiple times with different financial institutions hereafter after the National Land Commission’s (NLC) e-sakor, a land information service portal is integrated with the land mortgage system (LMS).

NLC Secretariat has also introduced QR code to streamline the issues related to lagthram and land mortgage.

The NLCS in a circular on March 14 stated that the changes would prevent multiple land mortgages in various financial institutions and avoid mortgaged plots from being transacted to multiple buyers.

It would also ease applying for new lagthram in lost cases. An applicant can apply from respective dzongkhag land record section or thromde land record and survey division for a replacement.

The lagthram would be issued to the thram holders for their reference and validation only.

If cases of misuse and illegal activity arise from the particular thram, the particular landowner would be held accountable for it, the circular stated.

It further stated that in any case of land transactions, individuals are asked to use the QR Code of the lagthram.

If the particular lagthram does not contain the QR Code, the landowner should approach the relevant stakeholders for authentication.

In view of the changes, the NLC secretariat stated that relevant agencies like financial institutions, local governments and the secretariat may discontinue collecting lagthram to ease the administrative burden on the citizens.

The NLCS further stated that financial institutions should update their Land Mortgage System to avoid double-mortgaging of land.

The current practice as per section 25 of the Land Rules and Regulation 2007 is, if there are any changes in the thram, resulting from any kind of transaction, lagthram has to be surrendered and the owners are issued with a new copy.

The section also highlights that if the particular plot is mortgaged with any financial institution, the landowner should handover lagthram to the mortgagee.

This means, a borrower who mortgages land has to deposit the original lagthram with the bank after completing all the formalities and endorsement of lien noting from thromde or national land commission secretariat (NLCS).  A lien is a legal right to claim a security interest in a property provided by the owner to a creditor.

However, in the past few years, financial institutions and some land buyers incurred losses after individuals mortgaged the same land and properties with more than two banks.