Dimapur, March 11 (EMN): The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has demanded that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi Act) be implemented in Nagaland at the earliest, stating that it has ‘immense potential to revolutionise the economy by empowering thousands of educated unemployed youths, who do not have land in Dimapur cadastral area but require capital to start a venture’.
In a statement issued on Wednesday, the union said the Act would help the existing entrepreneurs expand their business, and thus boost trade, commerce, and micro and small scale industries in the state.
“There is an apprehension among the public and the government that if the Sarfaesi Act is regularised in Nagaland, it may infringe upon the legitimate rights of the indigenous people of Nagaland, as the Banks will have free hand in auctioning their mortgaged lands in the eventuality of a loan default. This apprehension is genuine as the Sarfaesi Act seemingly violates the principles of Article 371 (A) which provides special provision and privileges in respect to land. Similarly, the Nagaland Government's Land and Revenue Regulations (Amendment) Act 2002 also gives the indigenous people the sole rights over land and other natural resources,” the statement read.
“In this connection, CNCCI urges the state government to immediately have a consultation on this issue with all stakeholders including the local entrepreneurs, business houses and contractors, banks and other financial institutions to bring about an amicable solution whereby the Sarfaesi Act can be implemented in Nagaland with certain modifications in tune with Article 371 (A), ensuring that, on implementation of the Sarfaesi Act, it does not affect the tenets of Article 371 (A) or the Nagaland Land and Revenue Regulations (Amendment) Act 2002, thus implying that the local property including land may be mortgaged by local indigenous Nagas and in the event of a loan default the same may be auctioned by the banks to local indigenous Nagas alone and not to outsiders,” it added.
Stating that the Act is necessary for mobilising capital, the federation said that “keeping in abeyance the act in Nagaland will deter the banking and other financial institutions to give out loans for business purposes as no bank will be ready to lend huge sums of money without security and mortgage”. It added that banks have literally stopped giving loans to local entrepreneurs due the issue of loan recovery from the borrowers in the state.
The federation has urged the state government and the chief minister to “take up effective measures and implement Sarfaesi Act in Nagaland at the earliest”, stating the state has nothing to lose but would help curb the educated unemployment issue in the state.