Module: | Enforcement and Appeals
Q9: When a secured creditor proceeds to sell an immovable property under the SARFAESI Act, they must adhere to specific procedural safeguards. Which of the following statements regarding this process are correct?
1. Before the sale, the authorized officer must obtain a valuation of the property from an approved valuer.
2. A sale notice must be published in two leading newspapers, one of which must be in the vernacular language of the locality.
3. Any surplus amount realized from the sale, after satisfying the debt and costs, must be returned to the borrower.
2. A sale notice must be published in two leading newspapers, one of which must be in the vernacular language of the locality.
3. Any surplus amount realized from the sale, after satisfying the debt and costs, must be returned to the borrower.
✅ Correct Answer: D
The Security Interest (Enforcement) Rules under the SARFAESI Act mandate a strict procedure: the property must be valued by an approved valuer to fix the reserve price; the sale notice must be widely publicized (two newspapers, one vernacular); and any residual money remaining after clearing the dues and expenses belongs to the borrower and must be refunded.