Foreign banks cannot take possession of Meghalaya land: Govt

Shillong, May 26 (UNI) The Meghalaya government today denied claims that foreign financial institutions would take possession of patches of land in Nongtrai and Shella regions if cement giant Lafarge fails in its project.

Lafarge is set to start sending limestone from its mining sites in Nongtrai and Shella to Chhatak in Sylhet district of Bangladesh for cement production. The limestone would be sent to the company's plant at Chhatak through a 17 km-long cross-border track.

''A multinational company can not mortgage land to foreign financial institutions just like that. This is true that they have used the land as collateral for securing funds from those institutions. But that does not pose any threat to the interests of the country and they have done it according to the law of the country,'' state Chief Secretary S K Tewari told UNI here today.

Several NGOs and other pressure groups had expressed fears that the foreign banks funding the Lafarge cement project would take possession of the land in the state in case the company defaults.

''No individual or group can simply go and take possession of land in some other country. Even if Lafarge defaults, not an inch of land would go to a foreign individual or group. The Reserve Bank of India (RBI) and the law of the country have enough provisions to protect the interests of the local residents,'' said Mr Tewari.

Lashing out at those opposing the Lafarge project, the Chief Secretary said this kind of controversy would harm the investment scenario in the state.

''Why is there a controversy? Lafarge is the only big multinational company investing in our state in a big way. These controversies are detrimental to the development of the state,'' he said.

UNI SG SP RN LR VV1611