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Denying SARFAESI Act will facilitate illegal money lenders’ market: NPCC


Dimapur, February 20: The Nagaland Pradesh Congress Committee today said denial of SARAFAESI Act application in the State is to stop banks and financial institution from lending at cheaper rates so that private money lenders are allowed to capture the loan market with the intent to capture the properties and businesses from those in dire need.
In a press release, NPCC president, K Therie claimed that most private money lenders belong to “big corrupt politicians”.
The rate of banks and financial institutions are within 8.50% to 12.50% annually, whereas private lenders charge 60-120% which is 500-1000% higher, he alleged.
Accusing the State Government of deliberately keeping the Nagaland Money Lenders Act of 2005 dormant to facilitate unauthorized and illegal money lenders, Therie said the Government has not appointed inspectors as provided in the Act to be vigilant with the application of the law.
Illegal and unauthorized money lenders are freely allowed to capture the properties because pawners are unable to repay the high interest, he said adding, no clean business can make 500-1000% profit and still sustain.
The NPCC president said inability to avail benefits from banks and other financial institutions has seriously impacted the growth of economy and displaced many properties in Kohima and Dimapur.
Many former well to do people have now no home to live in. Many businesses have also failed, he stated.
“The inability to declare Cadastral areas is another blockade. Government has no plan to fund the growth of public economy. The industrial policy is limited to subsidy because the govt. has not planned to fund capital and working capital. Further, the Government does not have any plan to fund students rather, they even misuse the children’s scholarships,” he alleged.
Since the Nagaland Money Lender Act of 2005 has come into force, money lenders without license is illegal while annual interest rate cannot exceed more than 3% of the prevailing average bank interest rate and should be calculated on an annual basis, Therie said adding, the pawned pledge can be acquired but needs to be auctioned in public and can be acquired by any indigenous inhabitant under the Nagaland Land and Revenue Regulation Act of 1978 and Amendment of 2002.
The NPCC president said no pawner should pay more than rate specified in the Money Lenders Act. “Whether there is any agreement under judicial paper or plain paper, it is illegal if it violates the Nagaland Money Lenders Act in any manner. Pawners should go for litigation in the court not lower than 2nd Class Magistrate and get relief from illegal money lenders,” he said and added that the Congress Legal Cell will provide free service, if needed by any. (Page News Service)