Kozhikode: Can land that falls within the ambit of the survey for the SilverLine rail project in Kerala be used as collateral for availing loans? The Co-operative Registrar has issued letters to the Co-operative banks and societies saying that the land that comes in the alignment of the proposed project can be taken as collateral for loans.
Just because the survey was conducted on the land, the loan should not be denied, the Registrar clarified.
The land through which the planned alignment of the railway line may pass has not been taken over by the Government so far. So the Registrar made it clear that it can be taken as collateral.
As reported earlier nationalized banks and cooperative banks deny loans to people who own land where the Social Impact Assessment of the Silverline project has been undertaken.
Banks fear that taking these lands as collateral for loans of over 10 years would backfire on them later. When the same fear arose within the cooperative societies and banks, the Registrar was approached for clarification. There were protests also after panchayats refused permission to construct buildings on such lands.
Though the Chief Minister had given permission, the notification for resuming the SilverLine survey has not been issued.
