State government on Friday notified the implementation of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 in Nagaland with effect from the date of this notification.
The notification, issued by the Finance department (general branch), specified secured assets taken over by banks and financing institutions could be sold only to indigenous inhabitants of Nagaland in accordance with provisions of the Nagaland Land and Revenue Regulations (Amendment) Act, 2002.
It may be mentioned that the Nagaland Assembly on November 26 last adopted a government resolution for streamlining the SARFAESI Act 2002 in the state which allows banks to auction properties of defaulters only to local people to recover loans.
The resolution was moved by chief minister Neiphiu Rio, who also holds the finance portfolio.