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

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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.

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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.

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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.

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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

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