#THE INTERNATIONAL FINANCE CORPORATION (STATUS, IMMUNITIES AND PRIVILEGES) ACT, 1958 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 

1. Short title and extent. 
2. Definitions. 
3. Conferment  of  status  and  certain  immunities  and  privileges  on  the  Corporation  and 
  conferment of certain immunities and privileges on its officers and employees. 
4. Power to make rules. 
THE SCHEDULE. 



#THE INTERNATIONAL FINANCE CORPORATION (STATUS, IMMUNITIES AND PRIVILEGES) ACT, 1958 

##ACT NO. 42 OF 1958 

[17th October, 1958.] 

An Act 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 of India as follows:— 

1. **Short title and extent.**—(1) This Act may be called the International Finance Corporation 
(Status, Immunities and Privileges) Act, 1958. 

(2) It extends to the whole of India. 

2. **Definitions.**—In this Act, unless the context otherwise requires,— 

  (a)  “Agreement”  means  the  Agreement  for  the  establishment  and  operation  of  the 
international body known as the International Finance Corporation; 

  (b)  “Corporation”  means  the  International  Finance  Corporation  established  under  the 
Agreement. 

3. **Conferment  of  status  and  certain  immunities  and  privileges  on  the  Corporation  and 
conferment  of  certain immunities  and  privileges  on its  officers  and  employees.**—

(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: 

  Provided that nothing in Section 9 of Article VI of the Agreement shall be construed as— 

    (a) entitling the Corporation to import into India goods free of any duty of customs without 
any restriction on their subsequent sale therein; or 

    (b) conferring on the Corporation any exemption from 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 services rendered. 

(2) The  Central  Government  may,  from  time  to  time,  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: 

  Provided that any  notification issued under this sub-section shall be laid for not less than thirty 
days before each House of Parliament as soon as may be after it is issued and shall be subject to such 
modifications  as  Parliament  may  make  during  the  session  in  which  it  is  so  laid  or  the  session 
immediately following. 

4. **Power to make rules.**—(1) The Central Government may, by notification in the Official 
Gazette, make rules for carrying out the purposes of this Act. 

[^2][(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in  making  any 
modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter 
have effect only in such modified form or be of 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 rule.] 

[^2]. Subs. by Act 20 of 1983, s. 2 and the Schedule, for sub-section (2) (w.e.f. 15-3-1984). 



##THE SCHEDULE 

*[See* section 3] 

###PROVISIONS OF THE AGREEMENT WHICH SHALL HAVE FORCE OF LAW 

###ARTICLE III 

SECTION 1. *Financing Operations*

  The  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 therein. 

*                                      *                                   *                                    *                                    *                 

SECTION 5. *Applicability of Certain Foreign Exchange Restrictions*

  Funds, 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 
reason  of  any  provision  of  this  Agreement,  from  generally  applicable foreign  exchange  restrictions, 
regulations and controls in force in the territories of that member. 

*                                     *                                  *                                       *                                    *                      

###ARTICLE VI 

###STATUS, IMMUNITIES AND PRIVILEGES 

SECTION 1. *Purposes of Article*

  To enable the Corporation to fulfill the functions with which it 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 Corporation*

The Corporation shall possess full juridical personality and, in particular, the capacity: 

  (i) to contract; 

  (ii) to acquire and dispose of immovable and movable property; 

  (iii) to institute legal proceedings. 

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 
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  or  execution  before  the  delivery  of  final  judgment  against 
the Corporation. 

SECTION 4. *Immunity of Assets from Seizure*

  Property  and  assets  of  the  Corporation,  wherever  located  and  by  whomsoever  held,  shall  be 
immune  from  search,  requisition,  confiscation,  expropriation  or  any  other  form  of  seizure  by 
executive or legislative action. 

SECTION 5. *Immunity of Archives*

  The archives of the Corporation shall be inviolable. 

SECTION 6. *Freedom of Assets from Restrictions*

  To the extent necessary to carry out the operations provided for in this Agreement and subject to 
the provisions of Article III, Section 5, and the other provisions of this Agreement, all property and 
assets  of  the  Corporation  shall  be  free  from  restrictions,  regulations,  controls  and  moratoria  of  any 
nature. 

SECTION 7. *Privilege for Communications*

  The 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*

All 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  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 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. 

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 payment 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 other local nationals. 

  (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 

     (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 

     (ii) if the sole jurisdictional  basis for  such  taxation is  the location  of  any  office  or  place  of 
business maintained by the Corporation. 

*                                       *                                      *                                  *                                   *                  

SECTION 10. *Waiver*

  The Corporation in its discretion may waive any of the privileges and immunities conferred under 
this  Article to such extent and  upon such conditions as it  may  determine. 