CM confused over SARFAESI Act: Therie

CM confused over  SARFAESI Act: Therie

Dimapur, February 17: The Nagaland Pradesh Congress Committee (NPCC) today said Chief Minister Neiphiu Rio appears confused about the SARFAESI Act 2002.
“Chief Minister’s notion on SARFAESI ACT 2002, that the Act conflicts with Art.371(A) is incorrect and misleading,” said NPCC president K Therie in a press release.
The NPCC chief said the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law to allow banks and other financial institutions to auction residential or commercial properties (of Defaulters) to recover loans. The objective is to shorten the process of going through Debt Tribunal.
Therie stated that banks and financial institutions and the buyers are bound to adhere to Nagaland Land & Revenue Regulation Act of 1978 which states: (2) “Notwithstanding anything to the contrary in any law, usage, contract or agreement no person other than the indigenous inhabitants of Nagaland shall acquire or possess by transfer, exchange, lease agreement or settlement of any land in any area or areas constituted into belts or blocks in contravention of the provisions of sub-section (1).
“(3) From and after the commencement of Nagaland Land and Revenue Regulation (Amendment) Act, 1978 no document evidencing any transaction for acquisition or possession of any land by way of transfer, exchange, lease, (Act XVI of 1908) agreement or settlement shall be registered under the India Registration Act, 19O8 if it appears to the Registering Authority that the transaction has been effected in contravention of the provisions of sub-section (2)”.
He also pointed out that amendment of Section 162 (2002) of the Assam Land and revenue Regulation, 1886 further states: “2. In Section 162, after sub – section (2), the following proviso shalI be inserted :- “Provided that nothing contained in this chapter or in the rules made thereunder shall affect any transfer by way of a mortgage in favour of any nationalised banks, a cooperative society registered under the Assam Cooperative Societies Act 1949 or such other financing institution as may be approved by the State Government.
“Provided further that such nationalized banks, cooperative societies or other financing institution shall not transfer any land to a person other than the indigenous inhabitant of Nagaland except with the previous sanction of the State Government or an authority appointed in this behalf.”
Stating that the Central Government has no authority to make law over land usage, Therie said the State legislature has the power to make law matters that are within the State List. “Land is state list. Further, Nagaland State has special power over ownership of land and transfer as provided in Art.371(A).”
According to Therie, there is no reason to conflict Art 371(A) or Nagaland Land Revenue and Regulation Act 1978 neither is there reason to be confused. “SARFAESI Act should be allowed or State Government should make alternative arrangements to enable public to mortgage their properties to secure loans,” he suggested. (Page News Service)