 bill no 141 of 1981 the african development fund bul, 1981 a billto implement the african developmettt· fund agreement and for matter, connected therewith be it enacted by parliament in the thirty-second year of the republic of india as follows:-1 (1) this act may be called the african development fund act, 1981 (2) it extends to the whole of india short title, extent and 5 (9) it shall come into force on such elate as the central government commsy, by notification in the official gazette, appoint mence-ment 2 in this act, unless the context otherwise requires,-de1i-nitiodii (a) "agreement" means the african development fund agreement; 10 (b) "fund" means the mrican development fund establfshed under the agreement paymentsto fund 3 (1) there shall he paid out of the con!lolidated fund of india after due appropriation made by parliament by law in this behalf, all sueh sums as may, from t!me to time be required for the purpose of paying-15 (a) the 8ubseription payable by the central government to the fund under articles 6, 7, 8 and 9 of the agreement; (b) any sums pavable hy the central government to the fund \ under artie1e 13 of the agreement _\ it!, "'it rbare'm davahl  bv t~~tral government to the fund (2) the central government may, if it thinks fit so to do, create ad issue to the fund, in \sucb form as it thinks fit, any such nod-interest bearing and dod-negotiable note or other obligations as are provided for by article 9 of the agreement " the reserve bank of india shall be the depository of the ladian 5 currency holdings of the fund relerve bank to be depoaitory for fund 5 (1) notwithstanding anything to the contrary contained in any other law, the provisions of the agreement set out in the schedule shall have the force of law in india: providen that nothing in article 49 ot the agreement shall be cons-10 trued as-(a) entitling the fund to import into india goods free of any duty of customs without any restriction or their subsequent sale therein; or (b) conferring on the fund any exemption from duties or taxes 15 which form part of the price of goods sold; or conferibent of status and certain immunities, exemptions and privilegeeon fund and (c) conferring on the fund any exemption from duties'or taxes which are in fad no more thancharges for services rendered (2) the can-kat govemm~t mflx,· by nowlc~ion in tu, oft\cialr gazette amend the schedule in· conformity with any amendments, slo duly made and adopted, of the provisions of the a~ement set out th4!1'eln cod-tennent of certain immunities, exemptions and privileges on its offtcera and employees t the central government may, by notification in the ofticlal gazette, make rules for carrying out the purpose of this act power tomab rules notifications issued under section 5 and rules made under section 6 to be laid before parliament 7 every notification issued under sub-section (2) of section 5· and every ruj,e made under scitction 6 sballbe laid, as soon, 8$ may, be after 25, it is issued or made, before each house of panliament, w~ it: ia in session, for a total period of thirty days which may be comprised in one session or id~ two or more sucdellil1e sessions, and if, before the, azpbw of the session immediately fouowjng, t~,sesaion or the succemiv," ~d4-aforesaid, both  house$ agt'ee in making,any, modification in the notiftoat,so tion or, as the case may be in the rule or both houses agree tbat the notification or rule should not be issued or made, the notification or rule shall thereafter have effect only in such modified form o~ be of no effect, as,the  casa may be; so, ho"{,ever, that any such modification or aiululment shall be without prejudice to the vrjicuty of anything pravl~l~ ~ under that notification or rule  ~ ;  (see section 5) provisi()ns of the agreement which shall· have force of l'aw chapter viii 5 's'tatus, 'im'munities,'exemptionsand privnkdes article 41 ptmpose of chapterto -enable the fund effectively to fulfil its purpose and carry out'the 10 functions entrusted to it, the status, immunities, exemptions andprivtleges set forth in this chapter shall be accorded to the fund in the territory of each' state participant, and each state participant·shall inform the fund of the specific action which it has taken for such purpose  article 42 status5 'the fund shall possess full judicial personality and, in 'par~ular, ·full capacity: (i) to contract; (ii) to acquire, and dispose of, immovable and movable property; and 20 (iii) to institute legal proceedings  article 43 legal process1 the fund shall enjoy iminunity from 'every 'fotm -cif 1eg811>rocess, 25 except in cases arising o'i1t of orin 'connection with·the exercise 'of its power to receive loans in  aacordance with attiele8, in which case actions may be brought against the fund in a court of competent juri&-diction in the territory of a country in which the fund has its office, 01' has appointed an agent for the purpose of accepting service or notice of ~o process, or ~bas -atherwise 'a~reea 'to ·be sued ~, n6twtthstanding· the provisions of paragraph 1, no action shall 'be broughfagmnst -the fund by any participant, or by any agency or instrumentality of a participant, or 'by any entity or person directly or indirectly , acting for or deriving claims 'from·a participant or from any agency or  \~ instrumentality of a participant participants shall have recourse to 'suc!h special proce~ures for the settlement of disputes between the t·md and ttsparticlpants as may be prescribed in this aareement in " bye-liwa end regulations of the fund, or incoutnctl __ 14 into the tuad \ 3 the fund shall also make provision for appropriate modes 0f settlement of disputes in cases which do not come within the provisions of paragraph 2 and of articles 52 and 53 andwhich are subject to the immunity of the fund by virtue of paragraph (1) of this article 4 where by virtue of any of the provisions of this agreement the 5 fund does not enjoy immunity from legal process, the fund, and its property and assets wherever located and by whomsoever held, shall nevertheless be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the fund  article 44 10 immuni~~ of assetsproperty and assets of the fund, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or legislative action 15  article 45 immunity of archives'fhe archives of the fund, and, in general, all documents belonging to it or held by it, shall be inviolable, wherever located  article 46!l0  freedom of assets from restrllctionto the extent necessary to carry out the purpose and function of the fund, and subject to the provisions of this agreement, all property and other assets of the fund shall be free from- restriction by financial controls, regulations, or moratoria of any lqnd !l5 •  article 47 ~lege for co~nlcatlonsofficial communications of the fund shall be accorded by each state participant the same treatment as it accords to the oftlcial commudications of other international financial institutions of wldch it is a member 3<>  article 48 immunities and privileges of ofnclals and personnblr:ul governors and directors, and their alternates, the president ana personnel, induding experts performing missions for the fund: (i) shall be immune from legal process with respect to acts 35 performed by them in their official capacity; (ii) when they are not local nationals, shall be accorded no less favourable immunities from immigration restrictions, alien rep· tration requirements and national service obugatiods, and no j' favourable faculties as regards exchadge retwatlona than' - 1f lccorded by the state paorticipant concerned to the' representatives officials and employees of comparable rank 01 any other international financial institution of which it is a member; and (iii) shall be granted no less favourable treatment in ~spect of 5 travelling facilities than is accorded by the state participant co~ cerned to representatives, officials and employees of comparable rank c?f any other international financial institution of which it is a member  article 49 exemption j'rom taxation10 1 the fund, its assets, property, income, operations and transactions, shall be exempt from au direct taxation, and from all customs duties, or taxes having equivalent effect, on goods imported or exported for iu official use the fund shall also be exempt from any obligation for 15 the payment, withholding or collection of any tax or duty 2 notwithstanding the provisions of paragrap,h l,the fund shall not claim exemption from taxes which are no more than charges for services rendered 3 articles imported under an exemption provided for by paragraph 20 1 shall not be sold in the territory of the state participant which granted the exemption except under conditions agreed with that participant 4 no tax shall be levied on or in respect of salaries and euwlu-"'lents paid by the fund to the president and personnel including ex-"  per'forming missions for it  article 50 w aiveit by the fundimmunities, exemptions and privileges provided in this ",re granted in the interests of the fund the board of direc-69  ~ may waive, to such extent and upon such conditions as it may so determine, the immunities, exemptions and privileges provided in this chapter in cases where its action would in its opinion further the interests of the fund 2 regardless of the provisions of paragraph i, the president shall have the right and the duty to waive the immunity of any of the 35 personnel, including experts performing missions for the fund, in cases where, in his opinion, the immunity would impede the course of justice and can be waived without prejudice to the interests of the fund   statement of objects and r~asonsindia has become a member of the african -development fund by acceding to the agreement establishing the african development fund, on the 11th may, 1981 chapter viii of the articles of agreement provides for granting to the fund, its officials and other personnel certain status, immunities, exemptions and privileges in the territory of each state parucipant article ~i of the agreement stipulates that to enable the fund to effectively fulfil its purpose and to carry out the functions entrusted to it, the status, -immunities, exemptions and privileges set forth in chapter vin shall be accorded to the· fund in the territory of each state participant and each state participant sha 1 inform the fund of the specific action which it has taken for such purpose the bill seeks to give effect to the provisions of the said chapter viii of' the agreement provision has also been made in the 'bill to empower the central government to make - payments to the fund towards subscriptions and other cj:1arges and for matters connected therewith new delhi; r venkataraman the 28tfj october, 1981  pr£siden'rs 1u!lcommendation -under articll!ls 11'1 and 274 of the -constitution -of iindiajrcopydf!letter ·'no v12/81-:adb, dated the 23rd november, 1991frtjin shri rverlkataramdn, minigterof -finance to the £ecretary,::tdk ssbba,] the president, having been informed of the subject matter of the prqposed· bill to implement the african development fund agreement 'in 80 'far as it relates to the status, immunities, exemptions arid privileges of· the african development :fund, and for matters- connectea therewith, recommends the introduction of the bill in lok sabhaunder articles 117 (1) and 274 (t) of the constitution of india and also consideration of the bill by lok sabha under article 117 ~3) of the constitution  financial memorandumsub-clause (1) of dause 3 of the bill makes provision for payments of the nature mentioned therein to the fund after due appropriation made by parliament by law sub-clause (2), of the same clause envisages the creation and issuing to the fund by the central government, if it thinks fit so to do, of certain non-interest bearing and non~negoti8ble notes or other obligatiolll it is not possible to make at this stage a precise est! mate of the expenditure that would be involved on account of these provisions however, it may, be mentioned that in accordance with the resolution passed by, the board of governors of the african development fund in terms of article 3(3) of the agreement india's initial subscription to the african development fund will be six million fund unit of account (one f'und unit of account being equal to us $111111), on~third of the amount (fua two million) will have to be paid all the first instalment, within thirty days after deposit of the instrument of ratifioation the other two instalments (fua two million each) will have to be paid respectively one year after the first instalment and one year after the second· instalment india will also have to pay as her contribution towards the second replenishment which will be about three million fua accordingly, the total amount involved on account of these payments would be as under: (million fua) 11)81 1982 1983 total initial subscription 2 2 2 6 second repleni'lhment 3 3 (antic:pated) total 5 2 2 q all the above payments will have to be made in free foreign exchange because of the variation of exchange rates, the actual amount to be paid may be somewhat more or less than $ 10 million article 6 of the agreement also provides that the fund shall, at such time as it deems appropriate, at appropriate intervals, review the adequacy of its resources and if it deems it desirable, i~ may authorise a general increase in the subscription of state participants on such terms and conditions as the fund shall determme if and when such a review leads to an increase in the funds subscription each member shal1 be given an opportunity to subscribe to a proportion of the increase in the funds subscription 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 he at her own option clause 5 (2) of the bill confers power on the central government 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 purposes of the act the immunities, exemptions and 'privileges of the african development fund and its officials and employees have been specified in the schedule to the bill, occasions for making rules, if any; will be few and far between even if s'uch ad occasion arises, 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 fund decides to waive any of the immunities, exemptions 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 3 the delegation of legislative power is thus of a normal character a bill to implement the african development fund agreement and for matters connected therewith ~  (shri r venkcjta1'am~n, minister 9f finane • ) 