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Law changes mooted to protect housing FIs from loan defaults; foreclosure law for NRIs

The government would promulgate an ordinance to amend the National Housing Bank Act to provide speedy foreclosure scheme with a view to minimising the loss to the housing financial institutions on account of defaulting housing loan recovery.

The proposed amendment would minimise the loss to the housing financial institutions and boost housing activities in the country, and in the process help economic revival.

''A Cabinet meeting to this effect would be held on January 5,'' minister for urban affiars and employment, Ram Jethmalani, said at the 20th International Conference of Non-Resident Indians in New Delhi organised by the NRIs' Institute.

A new foreclosure law will be promulgated by the President to put in safeguards after the repeal of the Urban Land Ceiling and Regulation Act through an ordinance in a couple of days.

A meeting of the Union Cabinet will be held for this purpose on January 5.

The conference highlighted the difficulties being faced by NRIs in coming in a big way to invest in India. A plea was made for early implementation of the Persons of Indian Origin card, announced by Finance Minister Yashwant Sinha in his budget speech.

While the announcement regarding the foreclosure scheme were briefly mentioned by Jethmalani, some other details were provided by officials later.

Others who participated at the inaugural session included former prime minister H D Deve Gowda, Delhi Chief Minister Shiela Dixit and Delhi Finance Minister Mohinder Singh Sathi.

Prime Minister Atal Bihari Vajpayee had stated at a recent global conference of entrepreneurs that his government would move ahead with the card. The PIO card will bestow several benefits to NRIs.

Dikshit ruled out a red carpet for the NRIs and said her government planned to make Delhi a global city.

Jethmalani said the government was sympathetic to the demand of NRIs for dual citizenship.

UNI

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