A farmer borrowed money against the mortgage of his agricultural land and defaulted. The bank issued a notice under Section 13(2) of the SARFAESI Act, 2002 and proposes to take possession of the land. Which of the following is correct?

Section 31 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 lists the security interests to which the provisions of the Act do not apply, and clause (i) of section 31(1) excludes any security interest created in agricultural land. The exemption reflects the policy of insulating farmers from the summary enforcement machinery of the Act. The bank may still pursue other remedies under general law, such as a suit for recovery or proceedings under the Recovery of Debts and Bankruptcy Act, but it cannot invoke section 13 enforcement against the agricultural land itself. The suggestions that the Act applies to all immovable property, or that prior consent or a percentage deposit is required, are unsupported. Enforcement under the Act is therefore unavailable for agricultural land.