Kerala: Land less than five cents to escape recovery
The Opposition also sought retrospective effect to the proposed amendment.
THIRUVANANTHAPURAM: The state Assembly on Monday unanimously passed a resolution urging the centre to exempt plots not exceeding five cents with house from recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). Chief Minister Pinarayi Vijayan also told the House that the state government was planning to exempt agriculture land to the extent of 50 cents in cities and one acre in rural areas from recovery of loans of up to Rs 5 lakh.
According to the resolution moved by Mr Vijayan, lakhs of economically weak families were facing severe hardships owing to the recovery of their houses under the SARFAESI Act for defaulting loan repayments. Hence, the exemption being given for agricultural land from recovery should be given to the lands not exceeding five cents with houses of less than 1,000 square-feet by amending the SARFAESI Act, it said. While supporting the resolution, the Opposition urged the government to ensure that banks did not deny loans against the guarantee of five cents of land and house if the proposed amendment was made. The Opposition also sought retrospective effect to the proposed amendment.