The SARFAESI Act, which allows banks to recover dues by taking possession of secured assets without the intervention of a court, was enacted in the year:

The correct answer is C, 2002. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act was passed in 2002. It allows a secured creditor, after giving the borrower a notice of sixty days, to take possession of the mortgaged asset and sell it to recover the dues, without filing a suit in a civil court. It also created the legal ground for asset reconstruction companies, which buy bad loans from banks. Agricultural land is kept outside the reach of the Act.

Option A, 1993, is the year of the Recovery of Debts Due to Banks and Financial Institutions Act, which set up the Debt Recovery Tribunals. Option B, 1999, is not linked with any such recovery law. Option D, 2016, is the year of the Insolvency and Bankruptcy Code, which handles the resolution of a whole company rather than the sale of one secured asset. Papers often place 1993 and 2016 beside 2002 exactly to test this order.