Economics · Economy

Consider the following statements regarding the SARFAESI Act, 2002: Statement 1: Under the SARFAESI Act 2002, a bank can only initiate recovery proceedings against a retail housing loan once the account has been classified as a Non-Performing Asset (NPA) and a demand notice has been served under Section 13(2). Statement 2: The demand notice under Section 13(2) provides the borrower with a window of 90 days to regularize the account or pay the entire outstanding dues before the bank can take further enforcement action. Statement 3: If a retail borrower submits an objection to the 13(2) notice, the bank is legally obligated under the 2016 amendment to reply with a reasoned order within 15 days of receiving the representation. Statement 4: Section 13(4) empowers the bank to take 'symbolic possession' of the property, which essentially means the bank gains the legal right to sell the property while the borrower might still physically reside in it. Statement 5: For taking 'physical possession' in cases of resistance from the borrower, the bank must file an application under Section 14 before the District Magistrate (DM) or Chief Metropolitan Magistrate (CMM). Statement 6: The SARFAESI Act cannot be invoked if the principal amount of the retail loan is less than Rs 1 lakh or if the remaining debt is less than 10% of the original principal and interest. Statement 7: A sale certificate issued by the Authorized Officer after a successful e-auction serves as a primary title document and does not require the presence of the original borrower for registration at the Sub-Registrar's office. Which of the statements above are correct?