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      Question

      Under Section 4(2) of the SARFAESI Act, an ARC aggrieved

      by an order of cancellation of its certificate of registration may prefer an appeal to which authority, and within what period?
      A To the High Court, within 60 days Correct Answer Incorrect Answer
      B To the Debts Recovery Appellate Tribunal, within 30 days Correct Answer Incorrect Answer
      C To the Reserve Bank of India, within 45 days Correct Answer Incorrect Answer
      D To the Supreme Court, within 90 days Correct Answer Incorrect Answer
      E To the Central Government, within 30 days Correct Answer Incorrect Answer

      Solution

      Section 4(2) provides that an ARC aggrieved by the order of cancellation of its certificate of registration may prefer an appeal, within a period of 30 days from the date on which such order of cancellation is communicated to it, to the Central Government. The proviso ensures that before rejecting the appeal, the ARC shall be given a reasonable opportunity of being heard. This is different from the appeal mechanism under Section 18, which goes to the DRAT. The appeal for cancellation of ARC registration thus goes to the executive authority (Central Government), not to a judicial/quasi-judicial body. This structure is consistent with the regulatory policy-making role of the Ministry of Finance over the financial sector.

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