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      Question

      If a bank initiates recovery actions under Section 13(4)

      of the SARFAESI Act, which of the following actions is NOT authorized by the law?
      A Taking physical possession of the secured asset Correct Answer Incorrect Answer
      B Taking over the management of the borrower's business Correct Answer Incorrect Answer
      C Appointing a manager to manage the secured assets Correct Answer Incorrect Answer
      D Imprisoning the defaulting directors directly without a warrant Correct Answer Incorrect Answer
      E Directing a person who owes money to the borrower to pay the bank instead Correct Answer Incorrect Answer

      Solution

      Under the SARFAESI Act, 2002, specifically Section 13(4), a secured creditor (bank) is empowered to take certain civil and administrative measures to recover dues without the intervention of a court or tribunal. However, it does not grant banks the power to take criminal actions like imprisonment.

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