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Section 31 of the SARFESI Act details the properties and rights or interests which are exempted from the operation of the said Act.The provisions of the Act are not applicable to these things mentioned in Section 31(a) to 31(j). They are noted below:
1. A lien on any goods, money or security given by or under the Indian Contract Act or the Sale of Goods Act, or any other law for the time being in force.
2. A pledge of movables within the meaning of Section 172 of the Indian Contract Act. It may be seen that in Section 172 of Indian Contract Act, "Pledge" is the bailment of goods as security for payment of a debt or performance of a promise.
3. Creation of any security in any aircraft as defined in Aircraft Act,1934.
4. Creation of security interest in any vessel as defined in Merchant Shipping Act.
5. Any conditional sale, hire-purchase or lease or any other contract in which no security interest is created. As per Section 2(zf) of the Act, creation of right on property in favour of secured creditor is a security interest.
6.Any rights of unpaid seller under Section 47 of Sale of Goods Act. The Sale of Goods Act gives power to an unpaid seller to retain goods as lien or as a bailee of buyer.
7. Any properties which Section 60(1) of Code of Civil Proceure excludes from liability of attachment.It may be seen that the proviso of Section 60(1) of CPC mentions about 20 things which are exempted from attachment or sale.
8. A security for repayment of debt not exceeding one lakh rupees.
9. Agricultural land is also exempted.
10. If the amount due is less than 20 percent of principal amount+interest, then also the provisions of the Act will not apply. For eg: if the principal amount+interest =1 lakh rupees; 20% of 1 lakh is 20,000/-. Here in this example, if the due is less than 20,000/- then the Act will not apply.

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