Government ‘strangling’ Nagaland’s economic growth: NPCC

Kohima, September 28 (MExN): The Nagaland Pradesh Congress Committee (NPCC) today accused the State Government of blocking all banks and other Financial Institutions (FI) from “lending to the Private Sector by way of rejecting the application of SARFAESI Act 2002” citing that it would infringe on the provisions of Article 371 (A).

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (the SARFAESI Act), among others, “allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.”

“This attitude of the Government, banks and other Financial Institutions has strangled the growth of economy in the state,” contended a press release from NPCC President K Therie.

Calling for the review of the state government’s stand that SARFAESI Act conflicts with Art.371 (A), the NPCC said that the objective of the act is only “to shorten the procedure of possessing the securities by empowering Banks and other FIs and to avoid the long procedure of debt recovery through Debt Tribunal Courts.”

“If SARFAESI Act is read with the Nagaland Land & Revenue Regulation Act of 1978 as amended upto date for implementation in matters of transfer of land, there is nothing to conflict with Art 371(A) as long as transfer of land is ensured to indigenous inhabitants of Nagaland only,” it asserted.   

To solve the deadlock, the state government just needs to “issue a simple directive” to Banks and other FIs accordingly, it added. 

“If any dispute arises,” the NPCC maintained, “it should be resolved in meetings between the Government, banks & other FIs. There is no reason why the matter should stand locked.”

Another stumbling block for the private sector, according to NPCC, is the process of accepting securities by banks and other FIs only from cadastral areas.

The state has declared Municipal and Town Councils with the objective to declare them as cadastral areas so as to open the doors of Banks and other FIs for lending and the Government should be having survey maps and land evaluation by now,” it said. 

Stating that it is high time for the government to “changes its attitude and declares” all Municipal and Town Council areas as Cadastral Areas, the NPCC claimed that such an action  would improve the flow of lending from banks and FIs to entrepreneurs, small, medium and major industries, student and housing loans etc.

Further, the NPCC state that the economy is “arm-twisted and squeezed by rampant, random and uncontrolled illegal taxation and collection of commissions at source by ministers and bureaucrats.”

“Some Government Departments are even collecting taxes at gates as exposed by PAC of Naga Council Dimapur. There is total failure in controlling and planning for funding,” it added. 

Meanwhile, the NPCC further pointed out that while the State budget was Rs.18, 301 Crore in the current fiscal, the budget does not “percolate down to the Districts and Divisions anymore” and have been centralized and are being drawn at Kohima and Dimapur Treasuries.

All these stance adopted by the Nagaland Government “is anti people and anti economic growth,” it said, adding, “The real growth of economy is the standard of living of the masses and not just a few with empires.”