The International Finance Corporation (Status, Immunities and Privileges) Act, 1958
# THE INTERNATIONAL FINANCE CORPORATION                        
 (STATUS, IMMUNITIES AND PRIVILEGES) ACT, 1958
 _______________

 ARRANGEMENT OF SECTIONS
 ____________
 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.

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# 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[1] 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.]

1. The Act has now been extended by Act 26 of 1968 to the Union territory Pondicherry, comprising the former French

Establishments in India, (w.e.f 1-8-1968).

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

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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

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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.

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