Ranchi, Oct. 26: The state government would suitably amend the Chhotanagpur Tenancy (CNT) Act to allow the tribals mortgage land for commercial loan from banks.

The decision comes in the wake of a high court judgment on Saturday, which quashed the July 30 notification of the state government that banned mortgage of tribal lands. The division bench, comprising Justice M.Y. Eqbal and Justice D.K. Sinha, giving the judgment observed that the notification of the state government was tantamount to depriving the tribals from their right to enjoy property and right to development. “It was wholly arbitrary, unjustified and against the provisions of the CNT Act, 1908,” the bench said.

Deputy chief minister Stephen Marandi said the Jharkhand High Court order quashing the July 30, 2007 notification would facilitate the tribals to get housing and education loans from banks by mortgaging their land. “We want to take it further by amending the act and allow them to mortgage land for getting loan for business purposes,” Stephen said.

Stephen headed a committee formed to examine the July 30 notification and suggest measures after the government order prohibiting mortgage of land for housing and educational loans created a furore in the tribal society. “We were in the process to annul the July 30 circular. But the high court order has accomplished our task,” he added.

Legal experts pointed out that the government notification in July was unnecessary. They pointed out that Section 46 of the Chhotanagpur Tenancy (CNT) Act provided that land could not be mortgaged for more than five years for general purposes and seven years for agriculture purposes. However, after the banks became inclined to provide loan to the tribals, the CNT Act was amended in 1975 to allow the tribals mortgage their land for 15 years for agricultural purposes.

“Also, there is shield for the tribals under Section 47 of the CNT Act. If a tribal becomes a defaulter, and his land goes in auction under the public demand recovery act, the land could be auctioned to the highest tribal bidder only,” they pointed out.

Revenue and land reforms minister Dulal Bhuiyan blamed former departmental secretary Vishnu Kumar for putting the government in the dock by issuing such a notification. “That was the reason we removed him from our department,” he said. Kumar refused to comment.