 to the asian development bank bill, 1966 -(tal as introduced in lok sabha)1 page 2, line 12,-tqr "paragraph it read "parag raphsll 2 page 2,-in the marginal heading to clause 5, for uem-loyees" read nemployees" 3 page 2, line 36,~ aft~r /i services it add t1rendered,·n 4 page 4, line 15,-after lip arti cular 11 insert ii, n 5 correct line numbers on pages 2,5 and 6 new delhi; april 26,  1966 vaisakha 6, 1888 (saka) s (2) it extends to the whole of india )rt title, extent and  bill no 33 of 1966 1 he asian development bank bill, 1966 a i billto implement the international agreement for the establishment and operation of the asian development bank and for matters con-meted therewith be it enacted by parliament in the seventeenth year of the republic of india as follows:-1 (1) this act may be called the asian development bank act, short 1966 title, extent (2) it extends to the whole of india and comme~~ (3) it shall come into force on such date as the central govern  ment, ~ent may, by notification in the qfticial gazette, appoint 2 in this act, unless the context otherwise requires,-deftnitlons (a) "agreement" means the agreement for the establishment and operation of the international body known as the asian development bank; (b) "bank" means the asian development bank established 5 under the agreement payments to bank 3 (1) there shall be paid out of the consolidated fund of india, after due appropriation made by p8rliament by law inihis behalf, all such sums as may, from time to time, be required for the purpose of paying,-10 (a) the subsrl'iptions payable by the central goverwnent to the bank ,meter paragraph 1, 2 and 3 of arhcje 5 of the agreement; (b) any cummission, fees or other charges payablc by the central government to the bank under arhcle 16 of the agree- is ment; (c) any sums payable by the cc·ltral cavernment to the bank under paragraph 1 of article 25 of the agreement (2) the central government may, if it thinks fit so to do, create and issue to the bank, in such form as it thinks fit, any such non- 20 interest bearing and non-negotiable notes or other obligations as are provided for by paragraph 3 of article 6 of the agreement 4 the reserve bank of india shall be the depository of tlae indiu currency holdings of the bank reserve bank to be depository for  bank (a) entitling the bank to import into india goods free of any 30 duty of customs without any re:striction on their subsequent s<:lle therein; or (b) conferring on the bank any exemption from duties or taxes which form part of the price of goods sold; or \  (c) conferring on the bank any exemption from duties or taxes which are in fact no more than char~es for ~erv1~ conferment 5 (1) notwithstanding anything to the contrary contained in any 25 of other law, the provisions of the agreement set out in the schedule tatus and shall have the force of law in india: certain immunlt1el provided that nothing in article m of the agreement shan bl exemptions construed asand privileges on bank <\nd conf  mentof certain immunities, - ~xemptions andprivi_ leges on its offtcet's and emloy_e •• (2) the central government may, by notification in the official gazette, amend the schedule in conformity with any amendments, duly made and adopted, of the provisions of the agreement set out therein 6 the central government may, by notification in the official power s gazette, make rules for carrying out the purposes of this act to make rules 7 every notification issued under sub-section (2) of section 5 and notiftcaf!very rule made under section 6 shall be laid as soon as may be after tions - it is issuf'd or made before each house of parliament while it is in issued under 10 session fer a total period of thirty days, which may be comprised in section one session or in two successive sessions, and if, before the expiry 5 and of the session in which it is so laid or the session immediately iollow- rules made ing, both houses agree in making any modification in the notification unde~ s~~ or, as the case may be, in the rule, or both houses agree that the ~o~aid 15 notification or rule should not be issued or made, the notification or b~rore rule shall thereafter have effect only in such modified fann or be of pal'liarneoj,il~ no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule  force of law chapter viii status, immunities, exemptions and privileges article 48 purpose of chapterto enable the bank effectively to fulfil its purpose and carry out the functions entrusted to it, the status, immunities, exemptions and 10 privileges set forth in this chapter shall be accorded to the bank in the ter~!~ory of each member  article 49 legal statusthe bank shall possess full juridical personality and, in particular is full capacity: (i) to contract; (ii) to acquire, and dispose of, immovable and movable property; and (iii) to institute legal proceedings  article 50 immunity from judicial proceedings1 the bank shall enjoy immunity from every form of legal process, except in cases arising out of or ~'l connexion with the exer  cise of its powers to borrow money, to guarantee obligations, or to '5 buy and sell or underwrite the sale' of securities, in which cases actions may be brought against the bank in a court of competen~ jurisdiction in the territory of a country in which the bank has its principal or a branch office, or has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities 2 notwithstanding the provisions of paragraph 1 of this article, nc action shall be brought against the bank by any member, or by s any agency or instrumentality of a member, or by any entity or person directly or indirectly acting for or deriving claims from a member or from any agency or instrumentality of a member members shall have reccurse to such special procedures for the settlement of controversies between the bank and its members as may be pres-10 cribed in this agreement, in the by-laws and regulations of the bank, or in contracts entered into with the bank 3 property and assets of the bank shall wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the 15 bank  article 51 immunlty of' assetsproperty and assets of the bank, wheresoever located and by whomsoever held, shall be immune from search, requisition, confislo cation, expropriation or any other form of taking or foreclosure by executive or legislative action  article 52 immunity of archivesthe archives of the bank and, in general, all documents belongls ing to it, or held by it, shall be inviolable, wherever located  article 53 freedom of assets from restrictionsto the extent necessary to carry out the purpose and functions of the bank effectively, and subject to the provisions of this agr~~ent, au property and assets of the bank shall be free from restnctions, 30  f t regulations, controls and moratona 0 any na ure  privilege for communica tionsofficial communications of the bank shall be accorded by each member treatment not less favourable than that it accords to the official communications of any other member  article 55 immunities and pl:~vrwi:ges of bank personnelall governors, directors, alternates, officers and employees of the bank, including experts performing missions for the bank: (i) shall be immu!le from legal process with respect to acts 10 performed by them in their offic:al capacity, except when th~ bank waives the immunity; (ii) where they are not local citizens or nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations, 15 and the same facilities as regards exchange regulations, as are accorded by members to the representatives, officials and employees of comparable rank of other members; and (iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, 20 officials and employees of comparable rank of other members  article 56 exemption from taxation1 the bank, its assets, property, income and its operations and transactions, shall be exempt from all taxation and from all customs 25 duties the bank shall also be exempt from any obligation for the payment, withholding or collection of any tax or duty 2 no tax shall be levied on or in respect of salaries and emoluments paid by the bank to directors, alternates, officers or employees of the bank, including experts performing missions for the bank, 30 except where a member deposits with its instrument of ratification or acceptance a declaration that such member retains for itseu and its political sub-divisions the right to tax salaries and emolument paid by the bank to citizens or nationals of such member 3 no tax of any kind shall be levied on any obligation or security issued by the bank, including any dividend or interest thereon, by whomsoever held: (i) which discriminates against such obligation or security solely because it is issued by the bank; or 5 (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 bank 10 4 no tax of any kind shall be levied on any obligation or security guaranteed by the bank, including any dividend or interest thereon, by whomsoever held: (i) which discriminates against such obligation or security solely because it is guaranteed by the bank; or is (ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the bank - - - - -  article 58 waivf:r of immunities, exemptions and prmll!:g!!!the bank at its discretion may waive any of the privileges, immunities and exemptions conferred under this chapter in any ease or instance, in such manner and upon such conditions as it may determine to be appropriate in the best interests of the bank  statement of objects and reasonsin pursuance of an international agreement to which india will  be a signatory, a new financial institution called the asian development bank is being established for accelerating the economic development of asia and the far east chapter viii of the article of agreement provides for the granting to the bank and its officers and employees certain status, immunities, exemptions and privileges in the territory of each member country article 57 of the agreement stipulates that each member country, in accordance with its juridical system, shall promptly take such action as is necessary to make effective in its own territory, the provisions set forth in chapter viii of the agreement by this bill, it is proposed to enact the necessary legislation to give effect to the provisions of the said chapter viii of the articles of agreement provision has also been made in the bill empowering the central government to make payments to the bank towards subscriptions, fees and other charges and for matters connected therewith new delhi; sachindra chaudhuri the 16th aprit 1966  president's recommendations under a1tticles 1]7 and 274 of the constitution of india[copy of letter no2 (39) 166-fbi, dated the 16th april, 1966 from shri sachindra chaudhuri, minister of finance to the secretary, lok sabha] the president having been informed of the subjeet matter of the proposed bill' to implement the international  agreement for the establishment and operation of the asian development bank in so far as it relates to the status, immunities, exemptions and privileges of the asian development bank, and for matters connected therewith recommends the introduction of the bill in the lok sabha as , required under articles 117 (1), 117 (3) and 274 (1) of the constitution of india  financial memorandumindia has been allotted a share of $93 million (rs, 44' 29 crores) in the total capital stock of $1,000 million of the asian development bank and is the second largest asian contribu~or to the capital of the bank, 2, under article 5 (1) of the articles of agreement of the bank, only half of each member's capital subscription will be initially payable and the other half shall be subject to calls only as and when required by the bank to meet its obligations on borrowings of funds for making or participating in direct loans or for guaranteeing loans for economic development, the payment of the paid-in-capital i to be made, under article 6 of the agreement, in five equal annual instalments, the first of such instalments being payable within 30 days after the entry into force of the articles of agreement or on or before the date of deposit of its instrument of utification by the member, whichever is later, 3, the agreement is likely to be entered into force shortly, and on this basis, india's payments towards the capital subscription of the bank are expected to be phased as shown below:-amount likely dates (u,s, $ million) ot payment in in total foreign indian exchange rupees 4'65 4'65 9'3 june-july, 1966 4'65 4'65 9'3 july, 1967 4'65 4'65 9'3 july, 1968 4'65 4'65 9'3 july, 1969 4'65 4'65 9'3 july, 1970 23'25 23'25 46'5 the remaining amount of $46' 5 million will be payable as and when called-up by the bank for meeting its obligations referred to above 4 article 5 of the agreement also provides that the capital stock of the bank shall be reviewed at intervals of not less than five years the earliest of such a review will therefore take place in 1971 if and when such a review leads to an increase in the bank's capital stock, each member shall be given an opportunity to subscribe to proportion of the increase in the bank's capital stock any payments that may have to be made by india on account of such an increase, cannot be foreseen at this stage and will in any case be at hu own option  memorandum regarding delegated legislationclause 5 (2) of the bill confers power on the central governmt!nt to amend the schedule in conformity with any amendments, duly made and adopted, of the provisions of the agreement set out therein 2 clause 6 of the bill confers power upon the central government to make rules for carrying out the purposes of the act the immunities, exemptions and privileges of the asian development bank and its officials and employees having been specified in the schedule to the bill, occasions for making rules, if any, will be ff"w and far between the asian bank has not yet started its functions 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 exemptions 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, exemptions and privileges and their waiver for instance, if the bank decides to waive any of the immunities, exemptions ot" privileges, a rule may be necessary prescribing the manner in which and the officer of the government to whom such 'viaiver should be communicated 3 the delegation of legislative power is thus of a normal haracter  a billto implement the international agreement for the establishment and operation of the asian developmex:t bank and for matters connected therewith (shri sachindra chaudhuri, minister of finance) 