Asset Reconstruction Company (ARC) acts as an agent for any bank or financial institution for the purpose of recovering their dues from borrowers. Explain the statement with legal provisions.

'Asset Reconstruction Company', means a company registered with Reserve Bank of India under section 3 of SARFAESI Act, 2002 for the purposes of carrying on the business of asset reconstruction or securitization or both. The buying of impaired assets from banks or financial institutions by ARCs will make their balance sheets cleaner and they will be able to use their time, energy and funds for development of their business. ARCs may be able to mix up their assets, both good and bad, in such a manner to make them saleable. The main objective of asset reconstruction company (ARC) is to act as an agent for any bank or financial institution for the purpose of recovering their dues from the borrowers on payment of fees or charges, to act as manager of the borrowers' asset taken over by banks, or financial institution, to act as the receiver of properties of any bank or financial institution and to carry on such ancillary or incidental business with the prior approval of Reserve Bank of India wherever necessary. If an ARC carries on any business other than the business of asset reconstruction or securitization or the business mentioned above, it shall cease to carry on any such business within one year of doing such other business.