The SARFAESI Act, 2002 is formally known as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. Under Section 1(3), on which date is this Act deemed to have come into force?

Section 1(3) of the SARFAESI Act, 2002 expressly provides that it shall be 'deemed to have come into force on the 21st day of June, 2002', even though the Act received Presidential assent and was published on 17th December, 2002. This retrospective commencement date is significant because it validates actions taken by banks in enforcement proceedings from June 2002 onwards. The date 17th December, 2002 is the date of enactment/assent, not the date of commencement. Other options refer to dates of specific amendments. This distinction is a frequently tested point in banking law examinations.