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?

Q: Answer-If a bank initiates recovery actions under Section 13(4) of the SARFAESI Act, which of the following...

Under the SARFAESI Act, 2002, specifically Section 134, 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.

A Taking physical possession of the secured asset Correct Incorrect

B Taking over the management of the borrower's business Correct Incorrect

C Appointing a manager to manage the secured assets Correct Incorrect

D Imprisoning the defaulting directors directly without a warrant Correct Incorrect

E Directing a person who owes money to the borrower to pay the bank instead Correct Incorrect

Detailed 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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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?

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