The origin of Asset Reconstruction Companies (ARCs) can be traced back to the late 1990s in India when the country's banking sector was facing a crisis due to a large number of non-performing assets. The Indian government introduced the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act in 2002, which paved the way for the establishment of ARCs as specialized entities to acquire and manage distressed assets.