CHAPTER III

MISCELLANEOUS

CHAPTER III

MISCELLANEOUS

6.

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

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.

7.

Tax exemption or benefit to continue to have effect.

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 of section 3 shall not be construed as a

transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) or

any other law for the time being in force.

8.

Guarantee to be operative.

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.

9.

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

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).

10.

Act to have overriding effect.

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.

11.

Application of other laws not barred.

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.

12.

Amendment to certain enactments.

12. Amendment to certain enactments.-The enactments specified in the

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

13.

Substitution in Acts, rules, regulations or notifications by Company in

place of Development Bank.

13. Substitution in Acts, rules, regulations or notifications by

Company in place of Development Bank.-In every Act, rule, regulation or

notification in force on the appointed day,-

(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) of section 2 of the Industrial

Development Bank (Transfer of Undertaking and Repeal) Act, 2003" shall

be substituted.

(d) for the words and figures "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) of section 2 of the Industrial Development Bank (Transfer

of Undertaking and Repeal) Act, 2003" shall be substituted.

14.

Power to remove difficulties.

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.

15.

Repeal and saving of Act 18 of 1964.

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.

THE SCHEDULE

(See section 12)

THE 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 sub-sections (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 from the Development Bank"

shall be omitted.

4. In section 45-I, in clause (bb), in sub-clause (iv), the item (a)

shall be omitted.

5. In section 46C, in sub-section (2), clauses (a) and (b) shall be

omitted.

PART II

AMENDMENTS TO THE BANKING REGULATION ACT, 1949

(10 OF 1949)

AMENDMENTS

1. In section 5, clause (ffa) shall be omitted.

2. In section 34A, in sub-section (3), the words "the Development

Bank" shall be omitted.

3. In section 36AD, in sub-section (3), the words "the Development

Bank," shall be omitted.

PART III

AMENDMENT TO THE INDUSTRIAL DISPUTES ACT, 1947

(14 OF 1947 )

AMENDMENT

In section 2, in clause (bb), the words " the Industrial Development

Bank of India" shall be omitted.

PART IV

AMENDMENTS TO THE SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA ACT, 1989

(39 OF 1989)

AMENDMENTS

In section 2,-

(a) for clause (h), the following clause shall be substituted, namely:-

(h) "industrial concern in the small scale sector" means any concern

engaged or to be engaged in,-

(i) the manufacture, preservation or processing of goods;

(ii) shipping;

(iii) mining including development of mines;

(iv) the hotel industry;

(v) the transport of passengers or goods by road or by water or by air

or by ropeway or by lift;

(vi) the generation, storage or distribution of electricity or any

other form of energy;

(vii) the maintenance, repair, testing or servicing of machinery or

equipment of any description or vehicles or vessels or motor boats or

trailers or tractors;

(viii) assembling, repairing or packing any article with the aid of

machinery or power;

(ix) the setting up of, or development of, an industrial area or an

industrial estate;

(x) fishing or providing shore facilities for fishing or maintenance

thereof;

(xi) providing special or technical knowledge or other services for the

promotion of industrial growth;

(xii) providing engineering, technical, financial, management,

marketing or other services or facilities for industry;

(xiii) service industry such as altering, ornamenting, polishing,

finishing, oiling, washing, cleaning or otherwise treating or adapting

any article or substance with a view to its use, sale, transport,

delivery or disposal;

(xiv) providing medical, health or other allied services;

(xv) providing services relating to information technology,

telecommunication or electronics;

(xvi) leasing, sub-leasing or giving on hire-purchase of industrial

plants, equipments, machinery or other assets including vehicles, ships

and aircraft;

(xvii) such other activity as the Central Government may, having regard

to the objects of this Act, by notification, specify in this behalf; or

(xviii) the research and development of any concept, technology,

design, process or product whether in relation to any of the matters

aforesaid, including any activities specified under sub-clause (xvii),

or any other matter and which is regarded as a small-scale undertaking

under section 11B of the Industries (Development and Regulation) Act,

1951 (65 of 1951);

Explanation.- The expression "processing of goods" includes any art or

process for producing, preparing or making an article by subjecting any

material to a manual, mechanical, chemical, electrical or any other

like operation.;

(b) after clause (la), the following clauses shall be inserted, namely:-

(lb) "Reserve Bank" means the Reserve Bank of India constituted

under the Reserve Bank of India Act, 1934 (2 of 1934);

(lc) "scheduled bank" means a bank for the time being included in the

Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);

(c) clause (q) shall be omitted..

T. K. VISWANATHAN,

Secy. to the Govt. of India.