The African Development Fund Act, 1982
# THE AFRICAN DEVELOPMENT FUND ACT, 1982
 _________

 ARRANGEMENT OF SECTIONS
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SECTIONS

1. Short title, extent and commencement.
2. Definitions.
3. Payments to Fund.
4. Reserve Bank to be depository for Fund.
5. Conferment of status and certain immunities, exemptions and privileges on Fund 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 AFRICAN DEVELOPMENT FUND ACT, 1982

 ACT NO. 1 OF 1982

[4th March, 1982.]

# An Act to implement the African Development Fund Agreement and for matters connected
 therewith.

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

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

Fund Act, 1982.

(2) It extends to the whole of India.

(3) It shall come into force on such date[1] 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 African Development Fund Agreement;

(b) “Fund” means the African Development Fund established under the Agreement.

**3. Payments to Fund.—(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 subscription payable by the Central Government to the Fund under Articles 6,7,8 and 9 of

the Agreement;

(b) any sums payable by the Central Government to the Fund under Article 13 of the Agreement;

and

(c) any charges payable by the Central Government to the Fund under Article 16 of the

Agreement.

(2) The Central Government may, if it thinks fit so to do, create and issue to the Fund, in such form as

it thinks fit, any such non-interest bearing and non-negotiable note or other obligations as are provided for
by Article 9 of the Agreement.

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

the Indian currency holdings of the Fund.

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

**conferment** **of** **certain** **immunities,** **exemptions** **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 Article 49 of the Agreement shall be construed 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 which form part of the price of

goods sold; or

(c) conferring on the Fund any exemption from duties or taxes which are in fact no more than

charges for services rendered.

1. 25thAugust, 1986, vide notification No. G.S.R. 1035(E), dated 25th August, 1986, see Gazette of India, Extraordinary,
Part II, sec. 3(i).


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(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 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.


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THE SCHEDULE

(See section 5)

PROVISIONS OF THE AGREEMENT WHICH SHALL HAVE FORCE OF LAW

CHAPTER VIII

STATUS, IMMUNITIES, EXEMPTIONSAND PRIVILEGES

ARTICLE 41

PURPOSE OF CHAPTER

To enable the Fund 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 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

STATUS

The Fund shall possess full judicial 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 43

LEGAL PROCESS

1. The Fund shall enjoy immunity from every form of legal process, except in cases arising out of or

in connection with the exercise of its power to receive loans in accordance with Article 8, in which case
actions may be brought against the Fund in a court of competent jurisdiction in the territory of a country
in which the Fund has its office, or has appointed an agent for the purpose of accepting service or notice
of process, or has otherwise agreed to be sued.

2. Notwithstanding the provisions of paragraph 1, no action shall be brought against 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 such special procedures for the settlement of disputes
between the Fund and its participants as may be prescribed in this Agreement, in the bye-laws and
regulations of the Fund, or in contracts entered into with the Fund.

3. The Fund shall also make provision for appropriate modes of settlement of disputes in cases which

do not come within the provisions of paragraph 2 and of Articles 52 and 53 and which 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 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

IMMUNITY OF ASSETS

Property 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.


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ARTICLE 45

IMMUNITY OF ARCHIVES

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

inviolable, wherever located.

ARTICLE 46

FREEDOM OF ASSETS FROM RESTRICTION

To 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 kind.

ARTICLE 47

PRIVILEGE FOR COMMUNICATIONS

Official communications of the Fund shall be accorded by each State participant the same treatment

as it accords to the official communications of other international financial institutions of which it is a
member.

ARTICLE 48

IMMUNITIES AND PRIVILEGES OF OFFICIALS AND PERSONNEL

All governors and directors, and their alternates, the President and personnel, including experts

performing missions for the Fund:

(i) shall be immune from legal process with respect to acts 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 registration requirements and national service obligations, and no less
favourable facilities as regards exchange regulations, than are accorded by the State participant
concerned to the representatives, officials and employees of comparable rank of any other
international financial institution of which it is a member; and

(iii) shall be granted no less favourable treatment in respect of travelling facilities than is

accorded by the State participant concerned to representatives, officials and employees of comparable
rank of any other international financial institution of which it is a member.

ARTICLE 49

EXEMPTION FROM TAXATION

1. The Fund, its assets, property, income, operations and transactions, shall be exempt from all direct

taxation, and from all customs duties, or taxes having equivalent effect, on goods imported or exported
for its official use. The Fund shall also be exempt from any obligation for the payment, withholding or
collection of any tax or duty.

2. Notwithstanding the provisions of paragraph 1, 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 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 emoluments paid by the Fund to the President

and personnel including experts performing missions for it.


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ARTICLE 50

WAIVER BY THE FUND

1. The immunities, exemptions and privileges provided in this Chapter are granted in the interests of

the Fund. The Board of Directors may waive, to such extent and upon such conditions as it may
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 1, the President shall have the right and the duty to waive

the immunity of any of the 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.


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