DIMAPUR, NOVEMBER 11 (MExN): The Nagaland Bar Association (NBA) has termed it “shameful” that the “social security of tribal economy of the natives of Nagaland has been prompted for consideration to be compromised for the profitable business of secured creditors and assets reconstruction companies at the behest of certain sections of society.”
A press release from the NBA said this in reaction to the proposal for adopting the SARFAESI Act, 2002 and to introduce land reform bills in the ensuing Winter Session of the Nagaland Legislative Assembly (NBA).
The NBA stated that the constitutional and legal provisions for protection of the “natives of Nagaland” against exploitation cannot be lawfully compromised at the instance of “certain members of society.” It reminded that constitutional and legal safeguards against economic exploitation of tribals extend to the entire country under the 5th Schedule to the Constitution of India for the natives of scheduled areas and scheduled tribes, and natives of tribal areas under the 6th schedule.
The NBA traced the history of these legal protections, and stated that “today, even among the natives of the State, the difference between the poor and the rich are becoming so much that providing a law that authorizes to sell mortgaged land and acquired land only to the Nagas or the aboriginals of the State shall be of no protection against economic exploitation of the poor.” Such a law, the NBA said would legalise concentration of landed properties at the hands of the rich entirely at the cost of the poor.
The association further explained that a steadily recovering money loan is not subject to reconstruction of assets as the process of reconstruction of assets shall come into play only when the borrower’s loan recovery account is classified as nonperforming assets due to default in repayment. It added that apart from securities, money loan can be secured by any collaterals, both tangible and intangible assets and not necessarily land or immovable properties. It further informed that all loans do not require collaterals, especially when the borrowers do not have any property to offer.
The NBA meanwhile stated that banking is a subject matter reserved for the Union Government, and added that the State Finance Department considering the difference in credit deposit ration of the state and the country is “wholly extraneous and without jurisdiction.” “The loss or profit making business of banks and financial institutions both national and multinational have nothing to do with for Nagaland Government,” it said.
The NBA stated that the SARFAESI Act is beneficial exclusively for “profitable businesses of secured creditors, the assets reconstruction companies and the rich people.” It cautioned that diluting constitutional and legal land rights for the entire natives of Nagaland at the behest of certain section of society would be highly detrimental.
The NBA advised the concerned authorities of the government to extensively explore the various tribal welfare and economic development schemes including those tied up with NGOs, both national and international. It appealed to the MLAs of Nagaland to exercise collective wisdom uninfluenced by any extraneous consideration, “so as to continue to preserve the common legacy undiluted in the statute book.”
