Kohima, February 16 (NEx): The Speaker of the House during the Seventh Session of the Thirteenth Nagaland Legislative Assembly on Monday, referred the matter of the SARFAESI Act, 2002 to the House Select Committee for discussion and further legal consultation before adopting the resolution, as suggested by the Leader of the House and Leader of Opposition.
The “SARFAESI ACT 2002” being a matter of urgent public importance, was discussed during the ongoing Seventh Session of the Thirteenth NLA on Monday, which was initiated by the Minister for Planning, Neiba Kronu and stated 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 credit to the people.
Kronu stated that the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (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, which was in conflict to the Article 371A (1)(a)(iv) 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 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.
Leader of Opposition, TR Zeliang stated that the Government should be very clear on the stand of the SARFAESI ACT, 2002 and should not make mistakes or errors while implementing the Act in the State and suggested that the matter be forwarded to the House Select Committee before adopting any resolution.
Leader of the House and Chief Minister, Neiphiu Rio appreciating all Members of the House for expressing concern regarding the Act, stated that no resolution had been passed regarding the Act and a meeting headed by the Finance Commissioner was held to discuss the implementation of SARFAESI Act, 2002 where the suggestions were forwarded to the State Cabinet.
Rio also suggested that the matter be put forwarded to the House Select Committee, to take further discussion and seek further legal consultation before adopting the resolution.
(With inputs from DIPR)