Banking · SARFAESI Act 2002 Provisions
Consider the following statements regarding the applicability and enforcement of the SARFAESI Act, 2002: Statement I: The provisions of the SARFAESI Act apply only to secured creditors, and any security interest created in agricultural land is strictly exempted under Section 31. Statement II: A bank can initiate recovery under SARFAESI even if the borrower's account has not been classified as a Non-Performing Asset (NPA), provided the default exceeds 90 days. Statement III: Once the bank issues a notice under Section 13(2), the borrower is prohibited from transferring the secured assets by sale, lease, or otherwise without the prior written consent of the secured creditor. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and III
- 2Only II and III
- 3Only I and III✓
- 4Only I
Correct answer
Only I and III
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