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    Question

    Regarding the SARFAESI Act, 2002, consider these

    statements: 1. It allows banks to auction properties without the intervention of a court. 2. It can be invoked even if the security interest is less than ₹1 Lakh. 3. The borrower has the right to approach the Debt Recovery Tribunal (DRT) after the 60-day notice period. Which of the statements above is/are correct? 
    A 1 and 2 only Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E 1 only Correct Answer Incorrect Answer

    Solution

    Statement 2 is incorrect because the Act does not apply to cases where the amount due is less than ₹1 Lakh or less than 20% of the principal and interest.

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