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INDUSTRIAL DEVELOPMENT BANK OF INDIA ACT, 1964
(1) This Act may be called the Industrial Development Bank of India Act, 1964.
(2) It extends to the whole of India.
(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act.
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1. Came into force on 20-6-1964 vide, Gazette of India, Extra., Pt. II, Sec. 3 (i), dated 20th June, 1964.
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In this Act, unless the context otherwise requires,—
(a) “Board” means the Board of Directors of the Development Bank;
(b) “Development Bank” means the Industrial Development Bank of India established under section 3;
1[(c) “industrial concern” means any concern engaged or to be engaged in,—
(i) the manufacture, preservation or processing of goods;
2[(iii) mining included development of mines;]
(iv) the hotel industry;
(v) the transport of passengers or goods by road or by water or 3[by air or by ropeway or by lift];
4[(vi) the generation, storage o
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be established for the purposes of this Act, a corporation to be known as the Industrial Development Bank of India.
(2) The Development Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name sue or be sued.
(3) The head office of the Development Bank shall be at Bombay or at such other place as the 1[Central Government] may, by notification in the Official Gazette, specify.
(4) Development Bank may establish offices, branches or agencies at any other place in or outside India.
(1) The Central Government may, at any time after the commencement of the Industrial Development Bank of India (Amendment) Act,1995 and by notification in the Official Gazette, convert such number of equity shares held by it not exceeding fifty crores as it may decide into redeemable preference shares.
(2) The redeemable preference shares referred to in sub-section (1) shall—
(a) carry such fixed rate of dividend as the Central Government may specify at the time of such conversion, and
(b) neither be transferable nor carry any voting rights.
(3) The redeemable preference shares referred to in sub-section (1) shall be redeemable by the Development Bank within three years from the date of such conversion in such instalments and in such manner as
(1) The issued capital of the Development Bank of seven hundred and fifty-three crores of rupees which stands fully vested in and subscribed by the Central Government immediately before the commencement of the Industrial Development Bank of India (Amendment) Act, 1995 shall, on such commencement, stand divided into seventy-five crores and thirty lakh equity shares of rupees ten each.
(2) The Board may, from time to time, increase the issued equity share capital of the Development Bank by allotment of shares to such persons and on such terms and conditions as the Board may determine:
Provided that no increase in the issued equity capital shall be made in such a manner that the Central Government holds at any time less than fifty-one per cent of the issued equity capital of the Development Bank.]
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(1) The issued capital of the Development Bank which has been subscribed by the Reserve Bank as on the date immediately preceding the commencement of section 5 of the Public Financial Institutions Laws (Amendment) Act,1975 (hereinafter referred to as the “appointed day”), shall, on such commencement, stand transferred to, and vested in the Central Government.]
2[***]
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1. Sections 4, 4A and 4B subs. by Act 52 of 1975, sec. 5, for section 4 (w.e.f. 16-2-1976).
2. Sub-section (2) omitted by Act 5 of 1995, sec. 4 (w.r.e.f. 12-10-1994).
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(1) The Development Bank may, by a resolution passed in a general meeting of the shareholders to, reduce its share capital in any way.
(2) Without prejudice to the generality of the foregoing power, the share capital may be reduced by:—
(a) extinguishing or reducing the liability on any of its equity shares in respect of share capital not paid-up;
(b) either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid-up share capital which is lost, or is unrepresented by available assets; or
(c) either with or without extinguishing or reducing liability on any of its equity shares, paying off any paid-up share capital which is in excess of the wants of the Development Bank.
The Reserve Bank shall be given by the Central Government, in cash, for the transfer to, and vesting in, the Central Government of the issued capital of the Development Bank which has been subscribed by the Reserve Bank, an amount equal to the face value of the said subscribed capital.]
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1. Sections 4, 4A and 4B subs. by Act 52 of 1975, sec. 5, for section 4 (w.e.f. 16-2-1976).
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(1) The authorised capital of the Development Bank shall be two thousand crores of rupees divided into one hundred and fifty crores fully paid up equity shares of rupees ten each and subject to the provisions of section 4E, fifty crores of fully paid-up redeemable preference shares of rupees ten each.
(2) The Development Bank may, from time to time, by a resolution in general meeting, increase the authorised capital to an amount not exceeding five thousand crores of rupees consisting of such number of equity shares and redeemable preference shares as it deems fit.]]
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1. Sections 4, 4A and 4B subs. by Act 52 of 1975, sec. 5, for section 4 (w.e.f. 16-2-1976).
2. Subs. by Act 5 of 1995, sec. 3, for section 4 (w.r.e
1[(1) The general superintendence, direction and management of the affairs and business of the Development Bank shall vest in a Board of Directors which may exercise all powers and do all such acts and things, as may be exercised or done by the Development Bank and are not by this Act expressly directed or required to be done by the Development Bank in general meeting.
(2) The Board may direct that any power exercisable by it under this Act shall also be exercisable in such cases and subject to such conditions, if any, as may be specified by it, by the chairman, managing director or the whole-time director.]
(3) Subject to the provisions of this Act, the Board in discharging its functions shall act on business principles with due regard to public interest.
2[***]
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(1) A person shall not be eligible for being elected as a director under clause (e) of sub-section (1) of section 6, if he—
(a) has been found to be of unsound mind by a court of competent jurisdiction and the finding is in force;
(b) is an undischarged insolvent;
(c) has applied to be adjudicated as an insolvent and his application is pending;
(d) has been convicted by a court of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence; or
(e) has not paid any call in respect of shares of the Development Bank held by him, whether along or jointly wit
[Rep. by the Industrial Development Bank of India (Amendment) Act, 1995 (5 of 1995), sec. 8 (w.r.e.f. 12-10-1994).]]
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1. Ins. by Act 52 of 1975, sec. 8 (w.e.f. 16-2-1976).
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Section 6(a) of the Industrial Development Bank of India (IDBI) Act, 1964, pertains to the classification of financial institutions within the framework of the Act. It plays a crucial role in defining the scope of entities that qualify as financial institutions under the IDBI Act, thereby influencing the regulatory and operational landscape of financial entities in India.
Section 6(a) explicitly designates the Industrial Development Bank of India (IDBI) as a financial institution. It forms part of the broader section that lists entities recognized as financial institutions under the Act, thereby conferring upon IDBI the status and functions associated with such institutions.
Section 6(a) itself does not prescribe any punishment. However, violations related to the functions or obligations of IDBI as a financial institution may attract penalties under other provisions of the IDBI Act or applicable laws.
Note: The references are based on the provided sources, primarily "," which contains relevant legal provisions and commentary on Section 6(a).
(1) The office of a director shall become vacant if he—
(a) becomes subject to any of the disqualifications mentioned in section 6B; or
(b) resigns his office by giving notice in writing under his hand and the resignation is accepted; or
(c) absents himself from three consecutive meetings of the Board without obtaining leave of absence from the Board;
(2) Notwithstanding anything in clause (a) of sub-section (1), the disqualifications referred to in that clause shall not take effect—
(a) for thirty days from the date of the adjudication, sentence or order;
(b) where any appeal or petition is preferred within thirty days aforesaid against the adju
2[(1) The Board shall consist of the following, namely:—
(a) a chairman and a managing director appointed by the Central Government:
Provided that the same person may be appointed to function both as chairman and as managing director;
(b) one whole-time director appointed by the Central Government on the recommendation of the Board;
(c) two directors who shall be officials of the Central Government nominated by the Central Government;
(d) three directors from amongst persons having special knowledge of, and professional experience in science, technology, economics, industry, banking, industrial co-operatives, law, industrial finance, investment, accountancy, marketing or any other matter, the
1[(1) The Board shall constitute an Executive Committee consisting of the chairman, the managing director, the whole-time director and such other directors as it may deem fit.]
(2) The Executive Committee shall discharge such functions as may be prescribed or as may be delegated to it by the Board.
(4) The Executive Committee or any other committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
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1. Sub-section (1) subs. by Act 52 of 1975, sec. 9 (w.e.f. 16-2-1976) and again subs. by Act 5 of 1995, sec. 10 (w.r.e.f 12-10-1994).
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The directors and the members of a committee shall be paid such fees and allowances as may be prescribed for attending the meetings of the Board or of any committee constituted in pursuance of this Act and for attending to any other work of the Development Bank:
1[Provided that no fees shall be payable to the chairman, if he is appointed whole-time, or to the managing director or to the whole time director or to any other director who is an official of the Government.]
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1. Proviso subs. by Act 52 of 1975, sec. 10 (w.e.f. 16-2-1976) and again subs. by Act 5 of 1995, sec. 11 (w.r.e.f. 12-10-1994).
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(1) The Development Bank shall not enter into any kind of business with any industrial concern, of which any of the directors of the Development Bank is a proprietor, partner, director, manager, agent, employee or guarantor, or in which one or more directors of the Development Bank together hold substantial interest:
Provided that this sub-section shall not apply to any industrial concern if any director of the Development Bank—
(i) is nominated as a director of the Board of such concern by Government, or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or by a Corporation established by any other law; or
(ii) is elected on the Board of such concern by virtue of shares held in the concern by Government, or a Government company as defined in section 6
(1) 1[The Development Bank shall function as the principal financial institution for co-ordinating the working of institutions engaged in financing, promoting or developing industry and for assisting the development of such institutions in such manner as it may deem appropriate and may] carry on and transact any of the following kinds of business, namely:—
(a) granting loans and advances to—
(i) the Industrial Finance Corporation, any State Financial Corporation or any other financial institution 2[which may be approved by the Board in this behalf] by way of refinance of any loans or advances granted to industrial concerns 3[***] by such Corporation or institution which are repayable 4[within a period not exceeding twenty-five years];
(ii) any scheduled bank or State Co-operative Bank
The Central Government may, after due appropriation made by Parliament by law in this behalf, advance to the Development Bank—
(a) an interest free loan of ten crores of rupees repayable in fifteen equal annual instalments, commencing on the expiry of a period of fifteen years from the date of the receipt of the loan; and
(b) such further sums of money by way of loan on such terms and conditions as may be agreed upon:
Provided that the Central Government may, on a request being made to it by the Development Bank, increase the number of instalments or alter the amount of any instalment or vary the date on which any instalment is payable under clause (a).
The Development Bank shall have the right to acquire, by transfer or assignment, the rights and interests of any public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956) (including any other rights incidental thereto) in relation to any loan or advances granted, or any amount recoverable by such institution, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument or in any other manner.]
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1. Ins. by Act 35 of 1986, sec. 8 (w.e.f. 14-8-1986).
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(1) The Development Bank may, for the purpose of carrying out its functions under this Act,—
(a) issue and sell bonds and debentures with or without the guarantee of the Central Government;
(b) borrow money from the Reserve Bank—
(i) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date on which the money is so borrowed against the security of stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India;
(ii) against bills of exchange or promissory notes arising out of bona fide commercial or trade transactions, bearing two or more good signatures and maturing within five years from the date of th
The rights and interests of the Development Bank (including any other rights and incidental thereto) in relation to any loan or advance granted, or any amount recoverable, by it may be transferred by the Development Bank, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument by endorsement, or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred, and the Development Bank may, notwithstanding such transfer, act as the trustee for the transferee.]
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1. Ins. by Act 75 of 1972, sec. 5.
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(1) Notwithstanding anything contained in the Foreign Exchange Regulation Act, 1947 (7 of 1947) or in any other enactment for the time being in force relating to foreign exchange, the Development Bank may, for the purpose of granting loans and advances under this Act, borrow, with the previous consent of the Central Government, foreign currency from any bank or financial institution in any foreign country or otherwise.
(2) The Central Government may, where necessary, guarantee any loan taken by the Development Bank under sub-section (1) or any part thereof as to the repayment of principal and the payment of interest and other incidental charges.
1[***]
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1. Sub-sections (3) and (4
(1) The Development Bank shall keep at its head office a register, in one or more books, of the shareholders and shall enter therein the following particulars so far as they may be available, namely:—
(i) the names, addresses and occupations, if any, of the shareholders and a statement of the shares held by each shareholder distinguishing each share by its denoting number;
(ii) the date on which each person is so entered as a shareholder;
(iii) the date on which any person ceases to be a shareholder; and
(iv) such other particulars as may be prescribed:
1[Provided that nothing in this sub-section shall apply to the shares held with a depository.]
(2
(1) Save as otherwise provided in sub-section (2), the equity shares of the Development Bank shall be freely transferable.
(2) Nothing contained in sub-section (1) shall entitle the Central Government to transfer any shares held by it in the Development Bank if such transfer will result in reducing the equity shares held by it to less than fifty-one per cent. of the issued equity capital of the Development Bank.
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* Section 13A ins. by Act 5 of 1995, sec. 15 (w.r.e.f. 12-10-1994).
(1) The shareholders present at an annual general meeting shall be entitled to discuss and adopt—
(a) the balance sheet and profit and loss account of the Development Bank made up to the date on which its accounts are closed and balanced;
(b) the report of working of the Development Bank for the period covered by the accounts;
(c) the auditor’s report on the balance sheet and accounts;
(d) proposals for declaration of dividend and capitalisation of reserves.
(2) The shareholders present at an annual general meeting may also discuss any other matter to be transacted at such meetings in accordance with the provisions of this Act.
(3) The matters relat
Every shareholder of the Development Bank holding equity shares shall have a right to vote in respect of such shares on every resolution and his voting right on a poll shall be in proportion to his share of the paid-up equity capital of the Development Bank:
Provided, however, that no shareholder other than the Central Government, shall be entitled to exercise voting rights in respect of any equity shares held by him in excess of ten per cent. of the issued equity capital.
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* Section 13G ins. by Act 5 of 1995, sec. 15 (w.r.e.f. 12-10-1994).
The Development Bank may receive gifts, grants, donations or benefactions from Government or any other source.
(1) The Development Bank shall in each year hold, in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it; and not more than fifteen months shall elapse between the date of one annual general meeting and that of the next:
Provided that the Development Bank may hold the first annual general meeting within a period of six months from the date on which it allots shares for the first time to public for subscription:
Provided further that the Central Government may extend the time within which any annual general meeting shall be held by a period not exceeding three months.
(2) Every annual general meeting shall be called for a time during business hours, on a day that is not a public holiday, and shall be hel
Notwithstanding anything contained in the Indian Trusts Act, 1882 (2 of 1882), the shares of the Development Bank shall be deemed to be included among the securities enumerated in section 20 of the said Act.]
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* Section 13E ins. by Act 5 of 1995, sec. 15 (w.r.e.f. 12-10-1994).
(1) The Board may refuse to register the transfer of any shares in the name of the transferee on any one or more of the following grounds, and on no other ground, namely:—
(a) the transfer of the shares is in contravention of the provisions of this Act or regulations made thereunder or any other law;
(b) the transfer of the shares, in the opinion of the Board is prejudicial to the interests of the Development Bank or to the public interest;
(c) the transfer of shares is prohibited by an order of a court, tribunal or any other authority under any law for the time being in force.
(2) The Board shall, before the expiry of two months from the date on which the instrument of transfer of shares of Development Bank is lodged with it for the purpos
Notwithstanding anything contained in section 13B, no notice of any trust, express implied or constructive, shall be entered on the register of shareholders or be receivable by the Development Bank:.
1[Provided that nothing in this section shall apply to a depository in respect of shares held by it as a registered owner on behalf of a beneficial owner.
Explanation.—For the purposes of section 13B, section 13BA and this section, the expression “beneficial owner" ,“depository” and “registered owner” shall have the meaning respectively assigned to them in clauses (a), (e) and (j) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996).]
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* Section 13C ins. by Act 5 of 1995, sec. 15 (w.r.e.f. 12-10-1994).
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With effect from such date as the Central Government may, by notification in the Official Gazette, appoint the Development Bank shall establish a special fund to be called the Development Assistance Fund.
To the Development Assistance Fund shall be credited—
(a) all amount received for the purposes of that fund by way of loans, gifts, grants, donations or benefactions from Government or any other source;
(b) repayments or recoveries in respect of loans, advances or other facilities granted from the fund;
(c) income or profits from investments made from the fund; and
(d) income accruing or arising to the fund, by way of interest or otherwise, on account of the application of the fund in accordance with the provisions of section 16.
(1) Where the Development Bank considers it necessary or desirable so to do, it may, subject to the provisions of sub-sections (2) and (3), disburse or spend from the Development Assistance Fund any amount on account or in consequence of the grant of any loan or advance, or on account or in consequence of entering into any arrangement, under clause (d) or clause (e) or clause (f) or clause (g) of sub-section (1) of section 9:
Provided that before granting any such loan or advance to an industrial concern or entering into any such arrangement with or in relation to an industrial concern, the Development Bank shall obtain the prior approval of the Central Government.
1[(1A) Where the Development Bank considers it necessary or desirable so to do, it may, subject to the provisions of sub-sections (2) and (3), disburse or spend from the Devel
(1) To the Development Assistance Fund shall be debited—
(a) such amounts as may from time to time be disbursed or spent under sub-sections (1) to (3) of section 16;
(b) such amount as may be required for discharging the liabilities in respect of loans received for the purposes of that fund;
(c) any loss arising on account of investment made out of that fund; and
(d) such expenditure arising out of, or in connection with, the administration and applicaion of the fund as may be determined by the Board.
(2) No amount shall be debited to the Development Assistance Fund except as provided for in sub-section (1).
(1) The balance-sheet and accounts of the Development Assistance Fund shall be prepared in such form and manner as may be prescribed.
(2) The Board shall cause the books and accounts of the fund to be closed and balanced as on the 30th day of June each year 1[or such other date, as the Central Government may, by notification in the Official Gazette, appoint]:
2[Provided that with a view to facilitating the transmission from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessary or expedient for the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.]
(3) The fund shall be audited by one
The Development Assistance Fund shall not be closed or wound up save by order of the Central Government and in such manner as that Government may direct.
All receipts of the Development Bank other than those which are to be credited the Development Assistance Fund under this Act shall be credited to a fund to be called the General Fund and all payments by the Development Bank, other than those which are to be debited to the Development Assistance Fund, shall be made out of the General Fund.
(1) The balance-sheet and accounts of the Development Bank shall be prepared in such form and manner as may be prescribed.
(2) The Board shall cause the books and accounts of the Development Bank to be closed and balanced as on the 30th day of June each year 1[or such other date, as the Central Government may, by notification in the Official Gazette, appoint]:
2[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it consider necessary or expedient for the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.]
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(1) The Development Bank may establish a reserve fund to which may be transferred such sums as that bank may deem fit out of the annual profits accruing to the General Fund.
1[(2) After making provision for bad and doubtful debts, depreciation of assets and for all other matters for which provision is necessary or expedient or which is usually provided for by bankers and for the reserve fund referred to in sub-section (1), and after transferring a part of the profits to such other reserves or funds as may be considered appropriate, the Board may, out of its net profits declare a dividend.]
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1. Subs. by Act 5 of 1995, sec. 17, for sub-section (2) (w.r.e.f. 12-10-1994)
1[(1) The accounts of the Development Bank shall be audited by auditors duly qualified to act as auditors under sub-section (1) of section 226 of the Companies Act, 1956 (1 of 1956) who shall be appointed by the Development Bank in general meeting of the shareholders out of the panel of auditors approved by the Reserve Bank for such term and on such remuneration as the Reserve Bank may fix.]
(2) The auditors shall be supplied with a copy of the annual balance sheet of the Development Bank and it shall be their duty to examine it together with the accounts and vouchers relating thereto and they shall have a list delivered to them of all books kept by the Development Bank and shall at all reasonable times have excess to the books, accounts, vouchers and other documents of the Development Bank.
(3) The auditors may, in relation to such acco
Save as otherwise provided in sub-section (4) of section 18, nothing contained in this Chapter shall apply to the Development Assistance Fund.
(1) On such date as the Central Government may, by notification in the Official Gazette, appoint, the entire undertaking of the Refinance Corporation for Industry, Limited (hereinafter in this Chapter referred to as “the company”) including all business, property, assets and liabilities, rights, interests, privileges and obligations of whatever nature, shall stand transferred to and vest in the Development Bank.
(2) As compensation for the transfer of the undertaking of the company to the Development Bank under sub-section (1), the Development Bank shall pay in cash to the company an amount equal to the total paid up capital of the company for the purpose of being distributed to the shareholders of the company in proportion to their contribution to such paid up capital.
(3) All contracts, deeds, bonds, agreements, powers of attorney, gra
(1) The Development Bank may appoint such number of officers and employees as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service.
(2) Without prejudice to the provisions of sub-section (1), it shall be lawful for the Development Bank to utilise, and for the Reserve Bank to make available the services of, such staff of the Reserve Bank on such terms and conditions as may be agreed upon between the Development Bank and the Reserve Bank.
1[(3) Every member of the staff—
(a) whose services are being, immediately before the appointed day, utilised by the Development Bank under sub-section (2), or
(b) whose services, having been made available to
The Board may, by general or special order, delegate to any committee of directors constituted under section 7 or to any director or any officer or other employee of the Development Bank, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and duties under this Act as it may deem necessary.
The Development Bank shall furnish, from time to time, to the Central Government and the Reserve Bank such returns as the Central Government or, as the case may be, the Reserve Bank, may require.
(1) The Development Bank shall not, except as otherwise required by this Act or any other law, divulge any information relating to or the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage customary among bankers, necessary or appropriate for the Development Bank to divulge such information.
1[(1A) The Development Bank may, for the purpose of the efficient discharge of its functions under this Act, collect from or furnish to the Central Government, the State Bank, any subsidiary bank, nationalised bank or other scheduled bank, State Co-operative Bank, State Financial Corporation or such other financial institution, as may be notified by the Central Government in this behalf, credit information or other information as it may consider useful for the purpose, in such manner and at such times, as it may think fit.
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(1) No act or proceeding of the Board or of any committee of the Development Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be.
(2) No act done by any person acting in good faith as a director shall be deemed to be invalid merely on the ground that he was disqualified to be a director or that there was any other defect in this appointment.
(1) Where any arrangement entered into by the Development Bank with an industrial concern provides for the appointment by the Development Bank of one or more directors of such industrial concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to the industrial concern, and any provision regarding share qualification, age-limit, number of directorships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Development Bank in pursuance of the arrangement as aforesaid.
(2) Any director appointed as aforesaid shall
(1) Every director shall be indemnified by the Development Bank against all losses and expenses incurred by him in, or in relation to, the discharge of his duties, except such as are caused by his own wilful act or default.
(2) A director shall not be responsible for any other director or for any officer or other employee of the Development Bank or for any loss or expenses resulting to the Development Bank from the insufficiency or deficiency of the value of, or title to, any property or security acquired or taken on behalf of the Development Bank of the insolvency or wrongful act of any debtor or any person under obligation to the Development Bank or anything done in good faith in the execution of the duties of his office or in relation thereto.
No suit or other legal proceeding shall lie against the Development Bank or any director or any officer or other employee of the Development Bank or any other person authorised by the Development Bank to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any other law or provision having the force of law.
(1) Notwithstanding anything contained in any other law for the time being in force, where a nomination in respect of any deposits, bonds or other securities is made in the prescribed manner, the amount due on such deposits bonds or securities shall, on the death of the depositor or holder thereof, vest in, and be payable to, the nominee subject to any right, title or interest of any other person to such deposits, bonds or securities.
(2) Any payment by the Development Bank in accordance with the provisions of sub-section (1) shall constitute a full discharge to the Development Bank of its liability in respect of such deposits, bonds or securities.]
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1. Ins. by Act 5 of 1995, sec. 19 (w.r.e.f. 12-10-1994).
The Banker’s Books Evidence Act, 1891 shall apply in relation to the Development Bank as if it were a bank as defined in section 2 of that Act.
Nothing contained in the Banking Regulation Act, 1949, except section 34A and section 36AD thereof, shall apply to the Development Bank.]
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1. Subs. by Act 35 of 1986, sec. 11, for section 34 (w.e.f. 14-8-1986).
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Notwithstanding anything to the contrary contained in the Income-tax Act, 1961, the Super Profits Tax Act, 1963 or in any other enactment for the time being in force relating to income-tax, super-tax or super profits tax, or any other tax on income, profits or gains, the Development Bank shall not be liable to pay income-tax; super-tax, super profits tax or any other tax in respect of—
(a) any income, profits or gains accruing or arising to the Development Assistance Fund or any amount received in that fund; and
(b) any income, profits or gains derived or any amount received by the Development Bank.
No provision of law relating to the winding up of companies or corporations shall apply to the Development Bank and the Development Bank shall not be placed in liquidation save by order of the Central Government and in such manner as it may direct.
(1) The Board may, with the previous approval of the 1[Central Government] make regulations not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for—
(a) the times and places of the meetings of the Board or of any committee constituted under this Act and the procedure to be followed at such meetings including the quorum necessary for the transaction of business 2[and the manner of adoption of resolutions];
(b) the 3[***] functions of the Executive Committee;
(c) the fees and allowances that may be paid to the directors
The enactments specified in Parts I to IV of the Second Schedule to this Act shall be amended in the manner directed in the first column thereof and such amendments shall take effect on the dates specified in the second column of that Schedule.
If any difficulty arises in giving effect to the provisions of this Act, as amended by the Public Financial Institutions Laws (Amendment) Act, 1975, the Central Government may, by order, do anything, not inconsistent with such provisions, for the purpose of removing the difficulty:
Provided that no such order shall be made after the expiration of three years from the date of commencement of the said Amendment Act.]
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1. Ins. by Act 52 of 1975, sec. 19 (w.e.f. 16-2-1976).
THE FIRST SCHEDULE
[See section 29(2)]
I,...................................................., do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as director, member of...........................................committee, auditor, officer or other employee (as the case may be) of the Industrial Development Bank of India and which properly relate to the office or position held by me in or in relation to the said Development Bank.
I further declare that I will not communicate or allow to be communicated to any person not legally entitled there to any information relating to the affairs of the Industrial Development Bank of India or to the affairs of any person having
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