THE INDUSTRIAL DEVELOPMENT BANK OF INDIA ACT, 1964
THE INDUSTRIAL DEVELOPMENT BANK OF INDIA ACT, 1964
Title : THE INDUSTRIAL DEVELOPMENT BANK OF INDIA ACT, 1964
Year : 1964
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 Development Assistance Fund any amount for one or more of the purposes specified in clause (1) or clause (m) of sub-section (1) of section 9.]
(2) Before seeking the approval of the Central Government under sub-section (1), the Development Bank shall satisfy itself that banking or other financial institutions or other agencies are not likely to grant such loan or advance to the industrial concern or to enter into any such arrangement with or in relation to the industrial concern in the ordinary course of business.
(3) The Central Government, before giving its approval, shall satisfy itself that such loan, advance or arrangement is necessary as a matter of priority in the interests of the industrial development of the country.
(4) For the removal of doubts it is hereby declared that nothing contained in this section shall be deemed to preclude the Development Bank from granting any loan or advance or from entering into any arrangement under clause (d) or clause (e) or clause (f) or clause (g) of subsection (1) of section 9 without the approval of the Central Government, if no amount in respect thereof is to be disbursed or spent from the Development Assistance Fund.
(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 application 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 or more auditors appointed by the 3*[Development Bank]under section 23 who shall make a separate report therein.
(4) The provisions of sub-sections(2), (3), (4) and(6) of section 23 shall, so far as may be, apply in relation to the audit of the Development Assistance Fund.
(5) The Development Bank shall furnish to the Central Government 4 [***] within four months from the date on which the accounts of the fund are closed and balanced, a copy of the balance sheet and accounts together with a copy of the auditors' report and a report on the operation of the fund during the relevant year and 5 [the Central Government shall, as soon as may be after they are received by it, cause the same to be laid before each House of Parliament. ]
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