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Govt strangling economic growth in Nagaland: Congress

By Correspondent
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DIMAPUR, Sept 29 - The Nagaland Pradesh Congress Committee on Sunday accused the state government of strangling the growth of economy in the state.

In a press release issued on Sunday, state Congress president K Therie alleged that the government has blocked all banks and other financial institutions from lending money to the private sector by way of rejecting the application of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 on the ground that it would infringe on the provisions of Article 371(A).

The Congress said this attitude of the government has strangled the growth of economy in the state.

It said the economy was being arm-twisted by rampant, random and uncontrolled illegal taxation and collection of commission at source allegedly by ministers and bureaucrats while some government departments were even collecting taxes at checkgates as exposed by the Public Action Committee of the Naga Council Dimapur.

The Congress hoped the state government was aware that there were two ways of funding the growth of economy � one was the state budget through the Finance Commission and the state�s own resources to develop infrastructure and facilitate the growth of economy, and the other was funding the private sector through banks and other financial institutions.

Pointing out that Rs 18,301 crore was the state budget for the current financial year, the Congress said the budget does not percolate down to the districts and divisions anymore. It has been centralised and is being drawn in treasuries in Kohima and Dimapur.

The party said the objective of the SARFAESI Act was only to shorten the procedure of possessing the securities by empowering banks and other financial institutions and to avoid the long procedure of debt recovery through debt tribunal courts. �If SARFAESI Act is read with the Nagaland Land and Revenue Regulation Act of 1978 as amended upto date for implementation in matters of transfer of land, there is nothing to conflict with Article 371(A) as long as transfer of land is ensured to indigenous inhabitants of Nagaland only,� it said.

Maintaining that the government may need to issue a simple directive to banks and financial institutions accordingly, the Congress said that if any dispute arises, it should be resolved in meetings between the government, banks and financial institutions.

According to the Congress, the other stumbling block for the private sector was that banks and financial institutions accept securities from cadastral areas only.

It said the state has declared municipal and town councils with the objective to declare them as cadastral areas so as to open the doors of banks and financial institutions for lending. The party said it was high time the government declares all municipal and town council areas as cadastral areas, which will improve the flow of lending from banks and financial institutions to entrepreneurs, small, medium and major industries, student and housing loans, etc.

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Govt strangling economic growth in Nagaland: Congress

DIMAPUR, Sept 29 - The Nagaland Pradesh Congress Committee on Sunday accused the state government of strangling the growth of economy in the state.

In a press release issued on Sunday, state Congress president K Therie alleged that the government has blocked all banks and other financial institutions from lending money to the private sector by way of rejecting the application of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 on the ground that it would infringe on the provisions of Article 371(A).

The Congress said this attitude of the government has strangled the growth of economy in the state.

It said the economy was being arm-twisted by rampant, random and uncontrolled illegal taxation and collection of commission at source allegedly by ministers and bureaucrats while some government departments were even collecting taxes at checkgates as exposed by the Public Action Committee of the Naga Council Dimapur.

The Congress hoped the state government was aware that there were two ways of funding the growth of economy � one was the state budget through the Finance Commission and the state�s own resources to develop infrastructure and facilitate the growth of economy, and the other was funding the private sector through banks and other financial institutions.

Pointing out that Rs 18,301 crore was the state budget for the current financial year, the Congress said the budget does not percolate down to the districts and divisions anymore. It has been centralised and is being drawn in treasuries in Kohima and Dimapur.

The party said the objective of the SARFAESI Act was only to shorten the procedure of possessing the securities by empowering banks and other financial institutions and to avoid the long procedure of debt recovery through debt tribunal courts. �If SARFAESI Act is read with the Nagaland Land and Revenue Regulation Act of 1978 as amended upto date for implementation in matters of transfer of land, there is nothing to conflict with Article 371(A) as long as transfer of land is ensured to indigenous inhabitants of Nagaland only,� it said.

Maintaining that the government may need to issue a simple directive to banks and financial institutions accordingly, the Congress said that if any dispute arises, it should be resolved in meetings between the government, banks and financial institutions.

According to the Congress, the other stumbling block for the private sector was that banks and financial institutions accept securities from cadastral areas only.

It said the state has declared municipal and town councils with the objective to declare them as cadastral areas so as to open the doors of banks and financial institutions for lending. The party said it was high time the government declares all municipal and town council areas as cadastral areas, which will improve the flow of lending from banks and financial institutions to entrepreneurs, small, medium and major industries, student and housing loans, etc.