THE ASIAN DEVELOPMENT BANK ACT, 1966 
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ARRANGEMENT OF SECTIONS 
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SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 
3.  Payments to Bank. 
4.  Reserve Bank to be depository for Bank. 
5.  Conferment of status and certain immunities, exemptions and privileges on Bank and conferment 

of certain immunities, exemptions and privileges on its officers and employees. 

6.  Power to make rules. 
7.  Notifications issued under section 5 and rules made under section 6 to be laid before Parliament. 

THE SCHEDULE. 

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THE ASIAN DEVELOPMENT BANK ACT, 1966 

ACT NO.18 OF 1966 

An  Act  to  implement  the  international  agreement  for  the  establishment  and  operation  of  the 

Asian Development Bank and for matters connected therewith. 

BE it enacted by Parliament in the Seventeenth Year of the Republic of India as follows:— 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Asian  Development 

[29th May, 1966.] 

Bank Act, 1966. 

(2) It extends to the whole of India. 

(3)  It  shall  come  into  force  on  such  date1 as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

 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 Asian Development Bank; 

(b) “Bank” means the Asian Development Bank established under the Agreement. 

3.  Payments  to  Bank.—(1)  There  shall  be  paid  out  of  the  Consolidated  Fund  of  India,  after  due 
appropriation  made  by  Parliament  by  law  in  this  behalf,  all  such  sums  as  may,  from  time  to  time,  be 
required for the purpose of paying,— 

(a) the subscriptions payable by the Central Government to the Bank under paragraphs 1, 2 and 3 

of Article 5 of the Agreement; 

(b) any commission, fees or other charges payable by the Central Government to the Bank under 

Article 16 of the Agreement; 

(c) any sums payable by the Central Government 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-interest bearing and non-negotiable notes or other obligations as are provided 
for by paragraph 3 of Article 6 of the Agreement. 

4. Reserve Bank to be depository for Bank.—The Reserve Bank of India shall be the depository of 

the Indian currency holdings of the Bank. 

5.  Conferment  of  status  and  certain  immunities,  exemptions  and  privileges  on  Bank  and 

conferment  of  certain 
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: 

exemptions  and  privileges  on 

immunities, 

its  officers  and                          

Provided that nothing in Article 56 of the Agreement shall be construed as— 

1.  19th,  December,  1966,  vide  notification  No.  S.O.  3803(E),  dated  8th,  December,  1966,  see  Gazette  of  India,  Extraordinary,  

Part II, sec. 3(ii). 

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(a)  entitling  the  Bank  to  import  into  India  goods  free  of  any  duty  of  customs  without  any 

restriction on their subsequent sale therein; or 

(b) conferring on the Bank any exemption from duties or taxes which from 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 

charges for services rendered. 

(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.  Power  to  make  rules.—The  Central  Government  may,  by  notification  in  the  Official  Gazette, 

make rules for carrying out the purposes of this Act. 

 7.  Notifications  issued  under  section  5  and  rules  made  under  section  6  to  be  laid  before 
Parliament.—Every  notification  issued  under  sub- section  (2)  of  section  5  and  every  rule  made  under 
section 6 shall be laid as soon as may be after it is issued or 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 1[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 notification or, as the 
case may be, in the rule, or both Houses agree that the notification or rule should not be issued or made, 
the notification or 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 notification or rule. 

1. Subs. by Act 20 of 1983, s. 2 and the Schedule, for “in two or more successive sessions, and if, before the expiry of the session 

immediately following the session or the successive session aforesaid” (w.e.f. 15-3-1983). 

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THE SCHEDULE 

(See section 5) 

PROVISIONS OF THE AGREEMENT WHICH SHALL HAVE FORCE OF LAW 

CHAPTER VIII 

STATUS, IMMUNITIES, EXEMPTIONS AND PRIVILEGES 

ARTICLE 48  

PURPOSE OF CHAPTER 

To  enable  the  Bank  effectively  to  fulfil  its  purpose  and  carry  out  the  functions  entrusted  to  it,  the 
status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the Bank in the 
territory of each member. 

ARTICLE 49  

LEGAL STATUS 

The Bank shall posses full juridical personality and, in particular, 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 PROCEEDINGS 

1. The Bank shall enjoy immunity from every form of legal process, except in cases arising out of or 
in connexion with the exercise of its powers to borrow money, to guarantee obligations, or to buy and sell 
or underwrite the sale of securities, in which cases actions may be brought against the Bank in a court of 
competent 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, no action shall be brought against the 
Bank  by  any  member,  or  by  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 recourse to such special procedures for the settlement of controversies 
between the Bank and its members as may be prescribed in the 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, whosesoever located and by whomsoever held, be immune 
from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank. 

ARTICLE 51  

IMMUNITY OF ASSETS 

Property  and  assets  of  the  Bank,  whosesoever  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. 

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ARTICLE 52  

 IMMUNITY OF ARCHIVES 

The  archives  of  the  Bank  and,  in  general,  all  documents  belonging  to  it,  or  held  by  it,  shall  be 

inviolable, wherever located. 

ARTICLE 53  

FREEDOM OF ASSETS FROM RESTRICTIONS  

To the extent necessary to carry out the purpose and functions of the Bank effectively, and subject to 
the  provisions  of  this  Agreement,  all  property  and  assets  of  the  Bank  shall  be  free  from  restrictions 
regulations, controls and moratoria of any nature. 

ARTICLE 54   

PRIVILEGE FOR COMMUNICATIONS 

Official 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 PRIVILEGES OF BANK PERSONNEL 

All  Governors,  Directors,  alternates,  officers  and  employees  of  the  Bank,  including  experts 

performing missions for the Bank: 

(i)  shall  be immune  from  legal  process  with  respect  to  acts  performed  by  them  in  their  official 

capacity, except when the 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,  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, officials and employees of comparable rank of other members. 

ARTICLE 56  

EXEMPTION FROM TAXATION 

1.The Bank, its assets, property, income and its operations and transactions, shall be exempt from all 
taxation and from all customs 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, except 
where a member deposits with its instrument of ratification or acceptance a declaration that such member 
retains for itself and its political sub-divisions the right to tax salaries and emoluments 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: 

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(i)  which  discriminates  against  such  obligation  or  security  solely  because  it  is  issued  by  the     

Bank; 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 Bank. 

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 

(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  

WAIVER OF IMMUNITIES, EXEMPTIONS AND PRIVILEGES 

The  Bank  as  its  discretion  may  waive  any  of  the  privileges,  immunities  and  exemptions  conferred 
under this Chapter in any case or instance, in such manner and upon such conditions as it may determine 
to be appropriate in the best interests of the Bank. 

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