Dimapur, February 20 (MExN): NPCC President, K Therie today said that denial of SARAFAESI Act application is to stop Banks and financial institutions from lending at cheaper rates so that private money lenders are allowed to capture the loan market. “Their intent is to capture the properties and businesses from those in dire need. Most private money lenders belong to big corrupt politicians.”
Therie, in a press release, held that the rate of Banks and financial institutions are within 8.50% to 12.50% annually, whereas private lenders charge 60-120% which is 500-1000 % higher.
The NPCC President further alleged that the government also has deliberately kept the Nagaland Money Lenders Act of 2005 dormant “to facilitate unauthorized and illegal money lenders.”
“It has not appointed Inspectors as provided in the Act to be vigilant with the application of the law. Illegal and unauthorized money lenders are freely allowed to capture the properties because pawners are unable to repay the high interest. No clean business can make 500-1000% profit and still sustain.”
The release meanwhile maintained that the inability to avail the benefits from Banks and other Financial Institutions has seriously impacted the growth of economy and displaced many properties in Kohima and Dimapur.
The release further said the inability to declare Cadastral areas is another blockade. Government has no plan to fund the growth of public economy. The industrial policy is limited to subsidy because the government has not planned to fund capital and working capital.
Further, it alleged that the “government does not have any plan to fund students, rather, they even misuse the children’s scholarships.”
“Since the Nagaland Money Lender Act of 2005 has come into force, money lenders without Licence is illegal while annual interest rate cannot exceed more than 3% of the prevailing average Bank interest rate and should be calculated on an annual basis.”
The pawned pledge can be acquired but needs to be auctioned in public and can be acquired by any indigenous inhabitant under the Nagaland Land and Revenue Regulation Act of 1978 and amendment of 2002, maintained the release.
It further said that no pawner should pay more than the rate specified in the Money Lenders Act. “Whether there is any agreement under judicial paper or plain paper, it is illegal if it violates the Nagaland Money Lenders Act in any manner.”
“Pawners should go for litigation in the court not lower than 2nd class Magistrate and get relief from illegal Money Lenders. Congress legal cell will provide free service, if need by any,” added the release.
