Module: General Practice
Q127: Section 31 of the SARFAESI Act, 2002 explicitly excludes certain types of properties and transactions from the purview of the Act. Which of the following is NOT covered under the SARFAESI Act?
✅ Correct Answer: D
Section 31(i) of the SARFAESI Act explicitly states that the provisions of the Act shall not apply to "any security interest created in agricultural land." Rationale: This exclusion is intended to protect the livelihoods of farmers and prevent the summary seizure of farming land by financial institutions without judicial oversight.
Agricultural land recovery generally falls under the purview of state-specific revenue recovery acts or civil courts.
Distinction: While residential and commercial properties are fully covered and can be attached or auctioned under SARFAESI, agricultural land remains a strict exception.
Agricultural land recovery generally falls under the purview of state-specific revenue recovery acts or civil courts.
Distinction: While residential and commercial properties are fully covered and can be attached or auctioned under SARFAESI, agricultural land remains a strict exception.