Multiple choice

After receipt of notice of possession from the bank, if the borrower transfers, other than in normal course of business, any of his assets without consent of the bank, what is the punishment under SARFAESI Act?

  1. There is punishment in the form of fine only.

  2. There is punishment in the form of imprisonment up to 2 years.

  3. The punishment can be in the form of the fine and imprisonment up to 1 year or both.

  4. There is no provision of any punishment.
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C Correct answer
Explanation

If any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules made thereunder, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.

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