 the international finance cor- poration (status, immunities and privileges) bill, 1958(as introduced tn lol< sabha)  (status, immunities and privileges) bill, 1958 (as introduced in lok sabha)a bill to implement the international agreement for the establishment and operation of the international finance corporation in so far as it relates to the status, immunities and privileges of that corporation, and for matters connected therewith be it enacted by parliament in the ninth year of the republic or india as follows:-1 (1) this act may be called the international finance corpora- short title tion (status, immunities end privileges) act, 1958 and extent 5 (2) it extends to the whole of india 2 in this act, unless the context otherwise requires,-definitions (a) "agreement" means the agreement for the establishment and operation of the international body known as the international finance corporation; 10 (b) "corporation" means the internatioool finance corporation established under the agreement 3 (1) notwithstanding anything to the contrary contained in conferment any other law, the provisions of the agreement set out in the ~:~us :~ schedule shall have the force of law in india: m~n!ties and pnvj1eges on is provided that nothing in section 9 of article vi of the agreement t~e corporaed tjon and shall be constru a&-conferment (a) entitling the corporation to import into india goods ~~e~i!ies free of any duty of customs without any restriction on their and privi-~ 1 h ' leges on its subsequent sa e t erem, or officers and  employees (b) conferring on the corporation any exemption froni duties or taxes which form part of the price of goods sold; or (c) conferring on the corporation any exemption from duties or taxes which are in fact no more than charges for 5 services rendered (2) the central government may, from time to time, by notification in the official gazette, mnend the schedule in conformity with any amendments, duly made and adopted, of the provisions of the agreement set out therein power to 4 (1) the central government may, by notification in the official 10 luke rules gazette, make rules for carrying out the purposes of this act (2) all rules made under this act'shall be laid for not less than thirty days before each house of parliament as soon as may be after they are made and shall be subject to such modifications as parliament may make during the session in which they are so laid or the 15 session immediately following  the schedule [see section 3] provisions of the agreement which shall have force 0 lawarticle iii  section 1 financing operationsthe corporation may make investments of its funds in productive private enterprises in the territories of its members the existence of a government or other public interest in such an enterprise shall not necessarily preclude the corporation from making an investment 25 therein  - - -       section 5 applicability of certain foreign exchange,restrictiomfunds received by or payable to the corporation in respect of an investment of the corporation made in any member's territories pursuant to section 1 of this article shall not be free, solely by 30 reason of any provision of this agreement, from generally appucable foreign exchange restrictions, regulations and controls in force in the territories of that member    -     -  article vi status, immunities and prmleges section 1 purposes of articleto enable the corporation to fulfill the functions with which it 5 is entrusted, the status, immunities and privileges set forth in this article shall be accorded to the corporation in the territories of each member  section 2 status of the corporationthe corporation shall possess full juridical personality and, in 10 particular, the capacity: (i) to contract; (ii) to acquire and dispose of immovable and movable property; (iii) to institute legal proceedings is section 3 position of the corporation with regard to judicial process actions may be brought against the corporation only in a court of competent jurisdiction' in the territories of a member in which the corporation has an office, has appointed an agent for the purpose ~o of accepting service or notice of process, or has issued or guaranteed securities no actions shall, however, be brought by members or persons acting for or driving claims from members the property and assets of the corporation shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment 25 or execution before the delivery of final judgment against the corporation section 4 immunity of asset's from seizure property and assets of the corporation, wherever located and by whomsoever held, shall be immune from search, requisition, 30 confiscation, expropriation or any other form of seizure by executive or legislative action  section 5 immunity of archivesthe archives of the corporation shall be inviolable section 6 freedom of assets from restrictions 35 to the extent necessary to carry out the operations provided for ia this agreement and subject to the provisions of article iii, section 5, and the other provisions of this agreement, all property llnd assets of the corporation shall be free from restrictions, regulations, controls and moratoria of any nature  section 7 privilege for communicationsthe official communications of the corporation shall be accorded by each member the same treatment that it accords to the official communications of other members    section 8 immunities and privileges of officers and employees sall governors, directors, alternates, officers and employees of the corporation: (i) shall be immune from legal process with respect to acts performed by them in their official capacity; (ii) not being local nationals, shall be accorded the same 10 immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other i's members; (iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members 20   section 9 immunities from taxation(a) the corporation, its assets, property, income and its operations and transactions authorised by this agreement, shall be immune from all taxation and from all customs duties the corporation shall also be immune from liability for the collection or pay- 2s ment of any tax or duty (b) no tax shall be levied on or in respect of salaries and emoluments paid by the corporation to directors, alternates, officials or employees' of the corporation who are not local citizens, local subjects, or othel local nationals 30 (c) no taxation of any kind shall be levied on any obligation or security issued by the corporation (including any dividend or interest thereon) by whomsoever held: (i) which discriminates against such obligation or security solely because it is issued by the corporation; or 3s (ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the corporation (d) no taxation of any kind shall be levied on any obligation or security guaranteed by the corporation (including any dividend or interest thereon) by whomsoever held: (i) which discriminates against such obligation or security solely because it is guaranteed by the corporation; or 5 (ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the corporation        -  section 11 waiver 10the corporation in its discretion may waive any of the privileges and immunities conferred under this article to such extent and upon tuch conditions as it may determine  statement of objects and reasonsthe international finance corporation has been established by an intemational agreement to which india is a signatory article vi of that agreement provides for the granting to the corporation and its officials and employees certain status, immunities and privileges in the territories of each member country section 10 of this article requires each member country to take such action as is necessary in its own territories for the purpose of making effective in terms of its own law, the principles set forth in the article in pursuance thereto several member countries have already enacted necessary legislation in this behalf by this bill, it is proposed to enact similar legislation to give effect to the provisions of the said article vi of the international agreement b gop ala reddi new delhi; the lit september, 1958  memorandum regarding delegated legislationclause 4 of the bill confers power upon the central government to make rules for carrying out the purposes of the act the immunities and privileges of the international finance corporation and its officials and employees having been specified in the schedule to the bill, occasions for making rules, if any, will be few and far between the corporation has not yet started its functions in india it is not possible, therefore, to envisage at this stage the matters which may have to be provided for by rules but as the immunities and privileges have been specified in the bill, it is clear that rules, if any, will be confined to matters of procedure and other matters of minor detail relating to the enjoyment of those immunities and privileges and their waiver for instance, if the corporation decides to waive any of the immunities or privileges, a rule may be necessary prescribing the manner in which and the officer of the government to whom such waiver should be communicated the delegation of legislative power is thus of a normal type  a billto implement the international agreement for the establishment and operation of the international finance corporation in so far as it relates to the status, immunities and privileges of that corporation, and for matters connected therewith the president has, in pursuance of clause (i) of article i i 7 and clause (i) of article 274 of the constitution of india, recommended to lok sabha tbe introduction of the bill mn kaul, secretary (shri b gopaia redd,_ minister of revenue and civil expenditure) 