DIMAPUR, FEBRUARY 17 (MExN): Nagaland Pradesh Congress Committee (NPCC) President, K Therie today stated that the Nagaland Chief Minister’s notion on SARFAESI Act 2002 that the Act conflicts with Article 371(A) “is incorrect and misleading.”
The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 is an Indian law to allow banks and other financial institutions to auction residential or commercial properties (of Defaulters) to recover loans. The objective is to shorten the process of going through Debt Tribunal.
A press release from the NPCC President said that Banks and Financial Institutions and the buyers are bound to adhere to Nagaland Land & Revenue Regulation Act of 1978.
He added that as per the act, nationalised banks, cooperative societies or other financing institution “shall not transfer any land to a person other than the indigenous inhabitant of Nagaland except with the previous sanction of the State Government or an authority appointed in this behalf.”
“Central Government has no authority to make law over land usage. State Legislature has the power to make law matters that are within the State List. Land is state list. Further, Nagaland State has special power over ownership of land and transfer as provided in Article 371(A),” Therie added.
The Congress President said that there is “no reason to conflict Article 371(A) or Nagaland Land Revenue and Regulation Act 1978.
“Neither is there reason to be confused. SARFAESI Act should be allowed or State Government should make alternative arrangements to enable public to mortgage their properties to secure loans,” he suggested.
