The Seventh Session of the Thirteenth Nagaland Legislative Assembly in progress on February 12. (DIPR Photo)
Our Correspondent
Kohima | February 15
The Nagaland Legislative Assembly (NLA) today decided to refer the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) to the NLA Select Committee.
After a lengthy discussion, Chief Minister Neiphiu Rio agreed to the view of opposition leader TR Zeliang that it should be referred to House Select Committee and bring it back to the house for further discussion.
Opposition leader TR Zeliang stated that the government should be very clear on the stand of the SARFAESI Act 2020 and should not make mistakes while implementing it. Zeliang said that today due to non-availability of loans from the banks, the common men in the state are left to the mercy of private money lenders.
Earlier, initiating the discussion, Neiba Kronu, Minister for Planning & Coordination, Land Revenue and Parliamentary Affairs said that the SARFAESI Act, 2002 empowers banks and financial institutions to take possession of the mortgaged assets against default in repayment of loan and realize their money by selling the secured assets without the intervention of Courts.
This, he stated was in conflict to the Article 371A of the Constitution of India which provides that no Act of Parliament in respect of ownership and transfer of land and its resources shall apply to the State of Nagaland unless the Legislative Assembly of Nagaland by a resolution so decides.
He further explained that non-implementation of the SARFAESI Act, 2002 has been detrimental to the overall economic growth of the State as it has restricted flow of loan to the people. Banks have been reluctant to provide loans in the absence of secured assets and an effective mechanism for expeditious recovery of dues in case of default in loan repayment, he added.
Rio appreciated all members of the House who have expressed concern regarding the SARFAESI Act, 2002 and also the various problems and hardship faced by entrepreneurs and local youth who want to start up a business.
