Select Committee on Sarfaesi Act holds first sitting

Our Correspondent
Kohima, April 26 (EMN): The Select Committee on Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi Act 2002) held its first sitting at Rhododendron Hall, Chümuokedima in Dimapur on Monday, under the chairmanship of Chief Minister Neiphiu Rio..

As per the update on Monday, the meeting held in Kohima ended on a “positive” note and the House decided to consult the respective funding agencies and come back again for “more clarity”. Further, the state government had assured the bank representatives to bring Land Reforms to suite the prevailing condition of the state.

While the chief minister made the opening and concluding remarks during the meeting, members present shared their opinion on the Sarfaesi Act 2002 (b), Art 371 (A) of the constitution of India with special reference to Nagaland and also on the Nagaland Land and Revenue Regulation Act 1978 and 2002.

The members further deliberated as to how to finance the entrepreneurs and the business people in the state.

It may be recalled that the NLA had extensively deliberated on the Sarfaesi Act, 2002 on two occasions during the state assembly sessions without positive outcome before the NLA speaker referred it to the House Select Committee for further deliberations on February 15 this year.

Leader of Opposition, Zeliang, had earlier called the attention of the house and the ruling government to take “concrete measures and solve the problems faced by its citizens till today” caused by banks barring loan assistance to the people of the state, allegedly after Law and Justice Department wrote a letter to Finance Department in 2019.

“Banks in the state have completely stopped financing against residential/commercial buildings and high education loans out of apprehensions arising out of a letter that was written by Law and Justice Department to Finance Department on 19th July, 2019”, he had claimed.

However, the standpoint of the ruling bench was that the Sarfaesi Act is “in conflict with Article 371 (A)” and thus needs careful consideration before implementing.