With reference to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, consider the following statements: 1. Under the SARFAESI Act, banks can enforce security interests without prior intervention of courts or tribunals. 2. The Act applies only to immovable properties pledged as security and excludes movable assets. 3. A secured creditor may take possession of the secured assets if the borrower fails to repay dues within 60 days of notice after the account becomes a non-performing asset. Which of the statements given above are correct? |ForumIAS

Q. With reference to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, consider the following statements:
1.Under the SARFAESI Act, banks can enforce security interests without prior intervention of courts or tribunals.
2.The Act applies only to immovable properties pledged as security and excludes movable assets.
3.A secured creditor may take possession of the secured assets if the borrower fails to repay dues within 60 days of notice after the account becomes a non-performing asset.
Which of the statements given above are correct?

[A] 1 and 3 only

[B] 2 and 3 only

[C] 1 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation: Statement 2 is incorrect. The SARFAESI Act covers both movable and immovable assets pledged as security. Banks can enforce security interests without court intervention after following the prescribed procedure.

Source- IE

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