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SARFAESI Act comes into effect in Nagaland

Nagaland News

KOHIMA, DECEMBER 10: Nagaland Government today notified the implementation of SARFAESI Act 2002 in the State with immediate effect.
In a notification, Additional Chief Secretary and Finance Commissioner Sentiyanger Imchen said that “In conformity with the special provision conferred by Article 371A (1) (a) (iv) of the Constitution of India, the Governor of Nagaland is pleased to notify the implementation of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 in Nagaland with effect from the date of this notification.”
He also informed that as for the sale of secured assets taken over by the banks and financing institutions is concerned, it can be sold only to indigenous inhabitants of Nagaland in accordance with provisions of the Nagaland Land and Revenue Regulations (Amendment) Act, 2002.
The Nagaland Assembly in its winter session on November 26 had passed a resolution to implement SARFAESI Act read with Article 371(A) for the ease of doing business in the State.
It may be mentioned here that following the non-implementation of the Act in the State, banks and financial institutions had stopped accepting properties for granting loan.
However, the State Government before passing the resolution in the Assembly held series of meetings with the State-level bankers’ committee and came to the understanding that they would not sell the mortgaged property only to the local people for recovery of loan amount.
(Page News Service)