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Power to adopt/reject SARFAESI Act lies with State Assembly: NPCC


Dimapur, July 24: The Nagaland Pradesh Congress Committee (NPCC) today said the power to adopt or reject SARFAESI Act lies with Nagaland State Assembly and not with the Speaker or any Department.
Stating that how to fund farmers and entrepreneurs is a major subject in politics besides law and order, the NPCC said banks and other financial institutions play a major role in building the economy of the nation all over the world.
In a press release, NPCC President, K Therie hoped the MLAs understand that banks and other financial institutions are the agencies that fund farmers and entrepreneurs.
He said in the present situation, the state has sealed the doors of banks and other financial institutions due to restrictions on application of SARFAESI Act 2002 better known as the Securitization Act.
He said the letter issued by Law Department directing AGM SBI Dimapur not to apply SARFAESI Act in Nagaland is unauthorized and illegal as it does not have the mandate of the State Assembly.
A simple reading of Art 371(A) begins with “Not withstanding anything in the Constitution; No act of Parliament shall apply in the State of Nagaland in respect of: i-iv clause, unless the State Assembly of Nagaland so decides by a resolution”, he stated.
The NPCC president suggested that the state Assembly may debate the merits and demerits and adopt or reject accordingly and at least understand the objective of SARFAESI Act.
The object of the Act is to facilitate recovery of dues of banks and other financial institutions by non-adjudicatory body. It also enables the bank and financial institutions to enforce their security interests expeditiously without being required to move to court or tribunal and it does not encroach upon the Nagaland Land Revenue and Regulation Act of 1978 Amendment 2002.
The NPCC further stated mortgaged land if auctioned, may be done so only to individuals who are indigenous inhabitants of Nagaland, as is specified in the Amendment of Section 162 (2002) of the Assam Land and revenue Regulation, 1886, thereby facilitating loans to local entrepreneurs and farmers.
Stating that farmers and entrepreneurs need collateral loan as well as collateral free loans for micro, small or medium industry and farming, the NPCC said no major private investment can come up in the state.
“Blocking loans is blocking the growth of economy, job creation, self-employment and value addition industries. The action of Government is anti-people,” Therie stated.
The NPCC president said Village Councils should be allowed to stand as guarantors for farmers and be responsible to the banks and financial institutions, which would ensure the land if need for auction, would not pass on to non indigenous individuals.
Further, Town & Municipal Councils should also be declared as cadastral areas to enable entrepreneurs under these areas to avail the benefits of the application of these Acts, he said.
If the State Assembly has a better alternative to fund the farmers and entrepreneurs, they can then stop the SARFAESI Act, Therie further stated. (Page News Service)