• NLA Select Committee conducts discussion on Act
• Says will not affect land and economic rights
Our Correspondent
Kohima | November 15
A meeting of the Nagaland Legislative Assembly’s (NLA) Select Committee to examine the application of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) was held on November 15 under the chairmanship of Chief Minister, Neiphiu Rio.
Former Chief Minister, TR Zeliang; Chief Secretary, J Alam were also present. The opinion of the Advocate General of Nagaland was also sought through video conference.
Talking to media persons after the meeting, Planning & Coordination, Land Revenue and Parliamentary Affairs Minister, Neiba Kronu informed that the meeting decided to table the findings and observations at the forthcoming state assembly session.
The Select Committee was of the opinion that when the banks confiscate the land of any individual unable to repay the loan, it should be sold out to indigenous people and not to ‘outsiders.’ In this regard, the government had earlier written a letter to the State Level Bankers Committee and the latter had also agreed to that, the Minister said.
He added that the SARFAESI Act, 2002 will not affect land and economic rights, and therefore will be tabled in the coming session of the assembly. On being asked about the status of land laws in the State, the Minister stated that a cadastral survey has to be done. He said that the State’s Land Revenue Department is working towards formulating a land law of the state. The government has given two months time to the Land Revenue Department JRC.
The State Assembly on February 15 referred the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 to the select committee, contending that provisions of the legislation were in conflict to Article 371A of the Constitution, which says that no act of Parliament shall come into effect in Nagaland without the assembly adopting it.
We have thoroughly studied whether the Act and Article 371(A) will clash and it is clear (it won't), Kronu said. The SARFAESI Act 2002 was enacted by Parliament to empower banks and financial institutions of India to take over the assets and properties of a borrower to recover an unpaid bad debt.
SARFAESI Act is a central Act and even the court cannot interfere if the property is confiscated by the bank, "but we will have our own land law so that the mortgaged property is not allowed to be sold to outsiders," he said.
Asked if the government would amend or add a clause on safeguarding the land and property in the SARFAESI Act, Kronu said being a central Act it cannot be amended by the State but even if it is there it won't affect our land and economy.
With PTI inputs
