High court direct state govt. to review its recommendation of loan against land

Jharkhand High Court passed a judgment in which it has directed the state government to make amendments in its scheme. According to the government scheme tribals of the state can mortgage to obtain loan against their property.

In its order the court has instructed the government to review its recommendation that prohibits tribals to pawn their lands to obtain personal loans. In an oral observation the court said state should certain that the interests of the tribal are protected. Court has also instructed that government should see that tribals do not mortgage their entire lands for loans as it can lead to a possibility of losing entire land for not paying up the dues.

The court gave the judgment in view of the issue raised by one Felix Tamba in public interest litigation after a government circular proposed by the land and revenue department which stated that members of Scheduled Tribes will not be able to secure loans in lieu of their land.

Tamba, a tribal, stated the circular will have a negative effect on the interests of the community. Tamba in his appeal stated that if the tribals won’t be able to secure loans by mortgaging lands, this will affect the future of tribal students.