Itanagar: The Arunachal Pradesh Land Settlement and Records Amendment Bill 2018, which gives ownership rights to indigenous people, including communities and clans possessing land possession certificates, has been passed by the Assembly through voice vote.

Land in Arunachal was till now held under customary laws and no document conferring the title of the land was ever given to the people.

In the absence of ownership document, the land could not be mortgaged for loans by banks and other financial institutions, it was not possible for farmers to give their land on long term lease and it posed a problem during payment of land compensation.

The bill, which was prepared by the Pema Khandu government after getting inputs from all concerned, recognises the ownership rights of citizens, particularly the indigenous people of the state. It provides the people the right to give their land on long-term lease upto 33 years, which is extendable to another 33 years.

A government release said on Tuesday that the legislation, which was passed on Monday, is expected to bring in huge investments from outside the state, which is expected to augment the economy of the state and bring holistic and inclusive development.

Besides, the land can now be mortgaged for obtaining loans from banks as the formal channels of credit has been opened. The bill also reduces the stamp duty on mortgage from 3 per cent to 1 per cent, giving huge relief to the indigenous people who avail loan from the banks.

The move is also expected to contain the unregulated money lending system prevalent in the state, which renders people vulnerable at the hands of money lenders.

The government has moved another legislation in this regard, the Arunachal Pradesh Money Lending (Regulation) Bill 2018, which is likely to be passed by the House in the ongoing budget session.

Several issues where raised by members of the House on the bill, which were clarified by land management minister Nabam Rebia.