Our Correspondent
Kohima | February 15
Chief Minister Neiphiu Rio today said that he will soon convene a meeting with the law & justice department, finance and the bankers on the SARFAESI Act.
Making concluding remarks on general discussion on the budget for the year 2020-21, Rio clarified that the last year itself, “we have examined the matter and taken up with the Central Government for amending the SARFAESI Act to restrict the transfer of land only to indigenous inhabitants of Nagaland so that we can adopt and implement the SARFAESI Act in Nagaland in harmony with the provisions of Article 3171A. We are waiting for a formal reply from the Central Government.”
Rio said that the State Government has already provided an option to the banks through “The Nagaland Land & Revenue Regulation (Amendment) Act 1978” in which Sub-section (2) of section 162 of the Assam Land and Revenue Regulation Act, 1886, permits ownership of land through transfer, exchange, lease, agreement or settlement only by indigenous inhabitants of Nagaland.
He said the Finance Department has also vide notification dated 5th March 2006 specified Dimapur Municipality / Mouza under Dimapur District as a notified town for the purposes of clause (f) of Section 58 of the Transfer of Property Act 1882 relating to mortgage by deposit of title deeds. It is open to the banks to take recourse to this facility to recover their dues for the time being, until a response is received from the Central Government on our reference on SARFAESI Act. Depending on the response, we will proceed to address the issue, Rio said.
In the meantime, Rio urged opposition member to produce official proof of freezing of all loans to the Nagas.
“My records show that the rate of lendings by banks are actually increasing at a steady rate. When I took over in 2018, the CD ratio of Nagaland as on 31st March 2018 was 37.52%. It increased to 41% in March 2019. As of December 2019, it is 44.48% which shows an increase of 18.5%.While this is low compared to the national CD ratio of 78.2% as of June 2019, it is clear that the level of lendings by banks is growing at a steady rate. As such, there is no justification to say the loans have been stopped. Banks themselves have clarified that local entrepreneurs are now able to avail of commercial or business loans upto an amount of Rs 2 crore without any collateral,” Rio said.
Rio also said that Bankers have also clarified that under the Municipal jurisdiction of Dimapur, commercial loans are being given against surveyed land for bigger amounts. In the case of loans to students, students can avail loans upto Rs. 7 lakhs without any collateral or security.
Above this amount, for studies in India loans can be given upto Rs. 30 lakhs with collateral, and upto Rs. 1.50 crore for studies abroad with collateral, he said.
