#THE TYRE CORPORATION OF INDIA LIMITED (DISINVESTMENT OF OWNERSHIP) ACT, 2007 
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##ARRANGEMENT OF SECTIONS 
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SECTIONS 
1.  Short title. 
2.  Disinvestment in the company. 
3.  Payment of consideration for disinvestment in the company. 
4.  Manner of disinvestment. 
5.  Provision in respect of officers and other employees of the company. 
6.  Act to have overriding effect. 


 
#THE TYRE CORPORATION OF INDIA LIMITED (DISINVESTMENT OF OWNERSHIP) ACT, 2007 

##ACT NO. 50 OF 2007 

[12th December, 2007.] 

An Act  to  provide  for  disinvestment  of  Government's  equity  in  the  Tyre  Corporation  of  India 
  Limited and for matters connected therewith or incidental thereto. 

  WHEREAS the Inchek Tyres Limited and the National Rubber Manufacturers Limited, engaged in the 
manufacture,  production  and  distribution  of  articles  mentioned  in  the  First  Schedule  to  the  Industries 
(Development and Regulation) Act, 1951, namely, tyres, tubes and other rubber goods, were nationalised 
under the Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984 
and  transferred  to,  and  vested  in,  the  Tyre  Corporation  of  India  Limited,  Calcutta  from  the  5th  day  of 
March, 1984; 

  AND WHEREAS  for  the  purpose  of  securing  optimum  utilisation  of  the  available  facilities  for  the 
manufacture,  production  and  distribution  of  tyres,  tubes  and  other  rubber  goods,  investment  of  large 
amount is necessary; 

  AND WHEREAS it is expedient to disinvest the Government's equity in the Tyre Corporation of India 
Limited,  Kolkata  to  enable  the  private  sector  to  have  investment  made  to  ensure  that  the  interest  of 
general  public  are  served  by  the  continuance  of  the  manufacture,  production  and  distribution  of  the 
aforesaid articles which are essential to the needs of the economy of the country. 

  BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as follows:— 

1. **Short title.**—This  Act  may  be  called  the  Tyre  Corporation  of  India  Limited  (Disinvestment  of 
Ownership) Act, 2007. 

2. **Disinvestment in the company.**—Where the Central Government, on the recommendations of the 
Board for Reconstruction of Public Sector Enterprises, is of the opinion that disinvestment is to be made 
in the Tyre Corporation of India Limited (hereinafter referred to as the company), it may pass an order 
providing for transfer, exchange or relinquishment of shares in the company to any person on such terms 
and conditions as may be agreed upon. 

3. **Payment of consideration for disinvestment in the company.**—(1)  For  the  transfer  to,  and 
vesting in, any person, the shares of the company, there shall be given to the Central Government by such 
person or in case such person is a company, by such company, such consideration, having regard to the 
optimum valuation of land, assets and liabilities of the company in accordance with a valuation method as 
specified by the Central Government. 

(2) The manner of payment of consideration for transfer of shares of the company to the transferee 
shall be such as may be agreed upon between the transferor, the company and the transferee, the person or 
the company, as the case may be. 

4. **Manner of disinvestment.**—The  Central  Government  may,  in  its  order  made  under  section  2, 
specify that disinvestment of shares shall be effected by one or more of the following methods as may be 
specified in such order, namely:— 

  (a) by  making  a  public  offer  or  preferential  allotment  or  private  placement  in  accordance  with 
such procedure as applicable in case of any other Government company; 

  (b) by directing the company to make further issue of equity capital to the members of the public 
or preferential allotment or private placement, as the case may be, in accordance with such procedure 
as applicable in case of the Government company. 

5. **Provision in respect of officers and other employees of the company.**—(1)  Every  officer  or 
other  employee  of  the  company,  except  the  Chairman  and  Directors,  serving  in  its  employment 
immediately before the disinvestment of the company under this Act, shall continue in office or service 
after such disinvestment, on same terms and conditions as would have been admissible to him if there had 
been no such disinvestment and shall continue to do so until the expiry of the period of three years from 
the date of disinvestments. 

(2) Where an officer or other employee of the company opts under sub-section (1) not to be in the 
employment or service of the company, such officer or other employee shall be deemed to have resigned. 

6. **Act to have overriding effect.**—The provisions of this Act shall have effect notwithstanding 
anything inconsistent therewith contained in the Inchek Tyres Limited and National Rubber 
Manufactures, Limited (Nationalisation) Act, 1984 (17 of 1984) or any other law for the time being in 
force.