The Nagaland Government on 10th December announced the implementation of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, in the State with immediate effect.
Chief Minister Neiphiu Rio, proposed the Act on the floor of the house.
For the ease of doing business in the state the Nagaland Assembly in its 13th NLA winter session had passed a resolution to implement SARFAESI Act read with Article 371(A), on 26 November.
Notification issued by the State’s finance department
Additional Chief Secretary and Finance Commissioner Sentiyanger Imchen, notified that, “In conformity with the special provision conferred by Article 371A (1) (a) (iv) of the Constitution of India, the Governor of Nagaland is pleased to notify the implementation of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) in Nagaland with effect from the date of this notification,”
Further it added, “In so far as the sale of secured assets taken over by the banks and financing institutions is concerned, it can be sold only to indigenous inhabitants of Nagaland in accordance with provisions of the Nagaland Land and Revenue Regulations (Amendment) Act, 2002,”
Previously, prior to the implementation of the Act, banks and financial institutions had stopped accepting properties for granting loans, in the state.
As per information, the state government held a series of meetings with the State-level bankers’ committee before putting forward the discussion in the Assembly.
Finally reaching to a conclusion that, they would not sell the mortgaged property only to the local people for recovery of loan amount.