Module: | Operational Procedures & Miscellaneous
Q14: The Central Registry (CERSAI) serves as a critical infrastructure for secured lending in India. Which of the following statements regarding its operational rules are correct?
1. The records maintained by the Central Registry are open for inspection by any person on payment of a prescribed fee.
2. In cases where multiple security interests are created on the same asset, priority of claim is generally determined by the date of registration with the Central Registry.
2. In cases where multiple security interests are created on the same asset, priority of claim is generally determined by the date of registration with the Central Registry.
✅ Correct Answer: C
To ensure transparency, the SARFAESI Act allows any person (including borrowers and lenders) to inspect the records of the Central Registry upon payment of fees.
Furthermore, the Act establishes a "priority of registration" principle, where the creditor who registers their security interest first typically holds a superior claim over subsequent registrants.
Furthermore, the Act establishes a "priority of registration" principle, where the creditor who registers their security interest first typically holds a superior claim over subsequent registrants.