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DIMAPUR, JULY 24 (MExN): The Nagaland Pradesh Congress Committee (NPCC) today stated that the power to adopt or to reject SARFAESI Act lies with Nagaland State Assembly and not with the Speaker or any Department.
In a press release, the NPCC President, K Therie said that funding farmers and entrepreneurs is a major subject in politics beside law and order. “Banks and other Financial Institutions play a major role in building the economy of the nation all over the world. I believe MLAs understand that banks and other financial institutions are the agencies that fund farmers and entrepreneurs,” it added.
In the present situation, the NPCC observed that the State has “sealed the doors of banks and other financial institutions due to restrictions on application of SARFAESI Act 2002 better known as the Securitisation Act.”
The Congress termed the letter issued by Law Department directing AGM SBI Dimapur not to apply SARFAESI Act in Nagaland is unauthorised and illegal as it does not have the mandate of the State Assembly.
“A simple reading of Art 371(A) begins with …not withstanding anything in the Constitution; No act of Parliament shall apply in the State of Nagaland in respect of: i-iv clause, unless the State Assembly of Nagaland so decides by a resolution,” the NPCC pointed out.
It said that the State Assembly may debate the merits and demerits and adopt or reject accordingly, adding that the object is to facilitate recovery of dues of banks and other financial institutions by non-adjudicatory body. The Act enables the bank and financial institutions to enforce their security interests expeditiously without being required to move to a court or tribunal, it said, adding that it does not encroach upon the Nagaland Land Revenue and Regulation Act of 1978 amendment 2002.
For instance, the NPCC said that mortgaged land if auctioned may be done so only to individuals who are indigenous inhabitants of Nagaland, as is specified in the Amendment of Section 162 (2002) of the Assam Land and revenue Regulation, 1886, thereby facilitating loans to local entrepreneurs and farmers.
It pointed out that farmers and entrepreneurs need collateral loan as well as collateral free loans for micro, small or medium industry and farming. “Blocking loans is blocking the growth of economy, job creation, self-employment and value addition industries. The action of Government is anti-people,” it claimed.
The NPCC further said that village councils should be allowed to stand as guarantors for farmers and be responsible to the banks and financial Institutions. This, it opined, will ensure the land if need for auction, will not pass on to non indigenous individuals. Further, it stated that town & municipal councils should also be declared as cadastral areas to enable entrepreneurs under these areas to avail the benefits of the application of these Acts.
If the State Assembly has a better alternative to fund the farmers and entrepreneurs, they can then stop the SARFAESI act, the NPCC said.
