S.1 Short title and commencement

       (1) This Act may be called the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003.
       (2) It shall come into force on such date as the Central Government may, by notification, appoint.

S.2 Definitions

       In this Act, unless the context otherwise requires,--
       (a) "appointed day" means such date as the Central Government may, by notification, appoint under section 3;
       (b) "Company" means the Industrial Development Bank of India Limited to be formed and registered under the Companies Act, 1956(1 of 1956);
       (c) "Development Bank" means the Industrial Development Bank of India established under sub-section (1) of section 3 of the Industrial Development Bank of India Act, 1964(18 of 1964);
       (d) "notification" means a notification published in the Official Gazette;
       (e) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934(2 of 1934).

S.3 Undertaking of Development Bank to vest in Company

       (1) On such date as the Central Government may, by notification, appoint, there shall be transferred to, and vest in, the Company, the undertaking of Development Bank.
       (2) Notwithstanding anything contained in the Banking Regulation Act, 1949(10 of 1949), the Company referred to in sub-section (1) shall be deemed to be a banking company within the meaning of clause (c) of section 5 of the Banking Regulation Act, 1949 and as such shall carry on banking business in accordance with the provisions of that Act, in addition to the business which may be carried on and transacted by the Development Bank:
       Provided that such Company shall not be required to--
       (a) obtain licence under section 22 of the Banking Regulation Act, 1949(10 of 1949);
       (b) maintain for

S.4 General effect of transfer and vesting undertaking

       (1) The Central Government, being the shareholder of the Development Bank and every other shareholder of the Development Bank immediately before the appointed day shall be deemed to be registered on and from the appointed day as a shareholder of the Company to the extent of the face value of the shares held by such shareholder.
       (2) The undertaking of the Development Bank which is transferred to, and which vest in, the Company under section 3 shall be deemed to include all business, assets, rights, powers, authorities and privileges and all properties, movable and immovable, real and personal, corporeal and incorporeal, in possession or reservation, present or contingent of whatever nature and wheresoever situate including lands, buildings, vehicles, cash balances, deposits, foreign currencies, disclosed and undisclosed reserves, reserve fund, special reserve fund, benevolent reserv

S.5 Provisions in respect of officers and other employees of Development Bank

       (1) Every officer or other employee of the Development Bank (except a director of the Board or the chairman and managing director or any whole-time director) serving in the employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in the Company by virtue of this Act, become, as from the appointed day, an officer or, as the case may be, other employee of the Company and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, leave fare concession, welfare scheme, medical benefit scheme, insurance, provident fund, other funds, retirement, voluntary retirement, gratuity and other benefits as he would have held under the Development Bank if its undertaking had not vested in the Comp

S.6 Concession, etc., to be deemed to have been granted to Company

With effect from the appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the Development Bank, in connection with the affairs and business of the Development Bank under any law for the time being in force shall be deemed to have been granted to the Company.

S.7 Tax exemption or benefit to continue to have effect

       (1) Where any exemption from, or any assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry forward of any unabsorbed depreciation or investment allowance or other allowance or loss has been extended or is available to the Development Bank under the Income-tax Act, 1961(43 of 1961), such exemption, assessment or benefit shall continue to have effect in relation to the Company.
       (2) Where any payment made by the Development Bank is exempted from deduction of tax at source under any provision of the Income-tax Act, 1961(43 of 1961), such exemption will continue to be available as if the provisions of the said Act made applicable to the Development Bank were operative in relation to the Company.
       (3) The transfer and vesting of the undertaking of the Development Bank or any part thereof in terms

S.8 Guarantee to be operative

Any guarantee given for or in favour of the Development Bank with respect to any loan, lease, finance or other assistance shall continue to be operative in relation to the Company.

S.9 Shares, bonds and debentures to be deemed to be approved securities

Notwithstanding anything contained in any other law for the time being in force, the shares, bonds and debentures of the Company shall be deemed to be approved securities for the purposes of the Indian Trusts Act, 1882(2 of 1882) and the Insurance Act, 1938(4 of 1938).

S.10 Act to have overriding effect

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act.

S.11 Application of other laws not barred

The provisions of this Act shall be in addition to, and not in derogation of the provisions of any other law for the time being in force.

S.12 Amendment to certain enactments

The enactments specified in the Schedule to this Act shall be amended in the manner provided therein.

S.13 Substitution in Acts, rules, regulations by Company in place of Development Bank

       (a) for the words "Industrial Development Bank of India", wherever they occur, the words "Industrial Development Bank of India Limited referred to in clause (b) of section 2 of the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003" shall be substituted;
       (b) for the words "Development Bank", wherever they occur, the words "Industrial Development Bank of India Limited referred to in clause (b) of section 2 of the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003" shall be substituted;
       (c) for the words and figures "the Development Bank means the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964(18 of 1964)", the words, brackets, letter and figures "the Industrial Development Bank of India Limited referred to in clause (b)

S.14 Power to remove difficulties

       (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary or expedient for removing the difficulty:
       Provided that no such order shall be made after the expiry of three years from the date of commencement of this Act.
       (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

S.15 Repeal and saving of Act 18 of 1964

       (1) On the appointed day, the Industrial Development Bank of India Act, 1964, shall stand repealed.
       (2) Notwithstanding the repeal of the Industrial Development Bank of India Act, 1964, the provisions of section 30A of the Act so repealed will continue to be applicable in respect of the arrangement entered into by the Development Bank with an industrial concern up to the appointed day and the Company will be entitled to act upon and enforce the same as fully and effectually as if this Act has not been enacted.

Sch.1 SCHEDULE

       (See section 12 )
       AMENDMENTS TO CERTAIN ENACTMENTS
       PART I
       AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934
       (2 OF 1934)
       AMENDMENTS
       1. In section 2, clause (bvii) shall be omitted.
       2. In section 17,
       (a) in subjections (4G) and (4H), the words "the Development Bank or" shall be omitted;
       (b) in sub-sections (4-I), (8A) and (12B), the words "the Development Bank" shall be omitted.
       3. In section 42, in sub-section (1), in the Explanation, in clause (c), in sub-clause (ii), the words "or fr