The Nagaland Pradesh Congress Committee on Tuesday said chief minister Neiphiu Rio’s contention that Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, also known as the SARFAESI Act, conflicts with Article 371(A) is incorrect and misleading.
PCC president K Therie in a statement said the SARFAESI Act 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, he added.
Rio at the state Assembly on February 13 said the SARFAESI Act 2002 cannot be implemented in Nagaland in its present from since it comes in direct conflict with the land holding systems and restrictions on transfer of land as provided in Article 371 (A) (special provisions on transfer of land and its resources), the Nagaland Land and Revenue Regulation (Amendment) Act 1978 and Land and Revenue Regulation (Amendment) Act 2002.
The PCC chief said there is no reason to be confused over Article 371(A) or Nagaland Land Revenue and Regulation Act 1978 as Nagaland has special power over ownership of land and its transfer as provided in Article 371(A).
He demanded that the SARFAESI Act be allowed to be implemented or the state government should make alternative arrangements to enable the public to mortgage their properties to secure loans.
Therie also pointed out that the central government has no authority to make law over land usage as the state legislature has the power to make law on matters such as land which are within the state list.
He explained that the banks and financial institutions and the buyers are bound to adhere to Nagaland Land and Revenue Regulation Act of 1978.
The Act states “notwithstanding anything to the contrary in any law, usage, contract or agreement no person other than the indigenous inhabitants of Nagaland shall acquire or possess by transfer, exchange, lease agreement or settlement of any land in any area or areas constituted into belts or blocks”.