1 Short title, extent and commencement
This Act may be called the Industrial Finance Corporation Act, 1948. 2*[It extends to the whole of India 3*.] It shall come INTO force on such date 4*...
2 Interpretation
In this Act, unless there is anything repugnant in the subject or context,- "Board" means the Board of Directors of the Corporation; "Corporation" means the...
3 Establishment and incorporation of Corporation
A Corporation to be called the Industrial Finance Corporation of India shall be established for the purposes of this Act. The Corporation shall be a body co...
4 Share capital and share - holders
The authorized capital of the Corporation shall be ten crores of rupees divided Into twenty thousand fully paid-up shares of five thousand rupees each of wh...
4A. Transfer of shares and increase of capital
On such date8* as the Central Government may, by notification in the Official Gazette, appoint all shares of the Corporation held by the Central Governmen...
5 Guarantee by Central Government
The shares of the Corporation shall be guaranteed by the Central Government as to the repayment of the principal and the payment of the annual dividend at...
5A. Shares of the Corporation to be deemed to be securities for certain purposes
Notwithstanding anything contained in the Acts hereinafter mentioned in this section, the shares of the Corporation shall be deemed to be included among the...
6 Management
The general superintendence and direction of the affairs and business of the Corporation shall be entrusted to a Board of Directors which 3*** may exercise ...
7 Powers of Executive Committee
Rep. by the Industrial and State Financial Corporations (Amendment) Act, 1955 (28 of 1955), s. 6.8.Advisory Committee....
8 [Advisory Committee.] Rep., ibid
9 Managing Director
10 Board of Directors
The Board of Directors shall consist of the following, namely:- 2*[a Chairman and a Managing director to be appointed by the Central Government after co...
10A. Chairman of the Board
The Chairman of the Board 3*[or the Managing Director and, in a case where the same person is appointed to function both as Chairman and as Managing Directo...
11 Term of office and retirement of Directors
A nominated Director shall hold office during the pleasure of 2*[the authority appointing him]. An elected Director shall hold office for 3*[three years]...
12 Disqualification
No person shall be a Director who-- 1*[except in the case of 2*[the Chairman [3*or the Managing Director], is a salaried official of the Corporation; or] is...
13 Removal of Director from office
6*[The Central Government may 7*[after consultation with the Development Bank] at any time remove the Chairman 8*[or the Managing Director] FROM office:] 9*...
13A. Casual vacancy of Chairman
If the Chairman of the Board 11*[or the Managing Director] is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave ...
14 Central Committee
15 Advisory Committees
 The Corporation may from time to time appoint one or more Advisory Committee or Committees for the purpose of assisting the Corporation in the efficient ...
16 Staff of Corporation
The Corporation may appoint such number of officers and other employees as it considers necessary or desirable for the efficient performance of its functi...
17 Meetings of the Board
Meetings of Board 3*** shall be held at such times and at such places as may be prescribed: Provided that until regulations have been made in this behalf su...
18 Offices and agencies
The Corporation shall establish its head office in Delhi and offices in Bombay, Calcutta, Kanpur and Madras, and may, 4*** establish offices or agencies in ...
19 Deposit Accounts
The Corporation may open Deposit Accounts with the Reserve Bank or with any agency of the Reserve Bank other than a Government treasury 5*[or 6*** with a sc...
20 Investment of funds
The Corporation may invest its funds in the securities of the Central Government or of any State Government and may, with the approval of the Central Govern...
21 Borrowing powers
1.     The Corporation may issue and sell bonds and debentures carrying interest for the purpose of raising its working capital. 11* * * * * ---------------...
21A. Bonds and debentures to be approved securities
Not with standing anything contained in any other law for the time being in force, the bonds and debentures issued or sold by the Corporation shall be, and sh...
21B. Power to transfer rights
The rights and interests of the Corporation (including any other rights incidental thereto) in relation to any loan or advance granted, or any amount recove...
21C. Power to acquire rights
The Corporation shall have the right to acquire, by transfer or assignment, the rights and interests of any public financial institution as defined in secti...
22 Deposits with the Corporation
The Corporation may accept deposits repayable after the expiry of a period which shall not be less than twelve months FROM the date of the making of the dep...
23 Business which the Corporation may transact
5*[6*** The Corporation shall, subject to the provisions of this Act, be authorised to carry on and transact the following kinds of business, namely:- guara...
25 Power to impose conditions for accommodation
In entering Into any arrangement under section 23 with an industrial concern, the Corporation may impose such conditions as it may think necessary or expedi...
26 Prohibited business
*The Corporation shall not - accept deposits except as provided by this Act;2* * * * * *3*[(c) grant any loan or advance on the security of its own shares.]4*...
27 Loans in foreign currency
Notwithstanding anything contained in the Foreign Exchange Regulation Act, 1947 (7 of 1947), or in any other enactment for the time being in force rel...
28 Rights of Corporation in case of default
Where any industrial concern which is under a liability to the Corporation under an agreement makes any default in repayment 1*[of any loan or advance or an...
29 Power to call for repayment before agreed period
9*[Notwithstanding anything in any agreement to the contrary, the Corporation may, by notice in writing, require any industrial concern to which it has gran...
30 Special provisions for enforcement of claims by the Corporation
3*[Where an industrial concern, in breach of any agreement, makes any default in repayment of any loan or advance or any installment thereof 4*[or in meetin...
30A. Power of Corporation to appoint Directors of an industrial
When the management of an industrial concern is taken over the Corporation, the Corporation may, by order notified in the Official Gazette, appoint as many ...
30B. Effect of notified order appointing Directors
On the issue of a notified order under section 30A,- 4*[all persons holding, immediately before the issue of the notified order, office as Directors of ...
30C. Powers and duties of Directors
Subject to the control of the Corporation, the 2*[Directors or Administrator] appointed under section 30A shall take such steps as may be necessary fo...
30D. No right to compensation for termination contract of managing agents
Notwithstanding anything contained in any law for the time being in force, 3*[no Managing Director or any other Director or Manager or holder of any office ...
30E. Application of Act 1 of 1956
Where the management of an industrial concern, being a company as defined in the 1*[Companies Act, 1956 (1 of 1956)], is taken over by the Corporation, then...
31 Act 18 of 1891 to apply to the books of the Corporation
The Corporation shall be deemed to be a bank for the purposes of the Bankers Books Evidence Act, 1891 (18 of 1891)....
32 Disposal of profits
The Corporation shall establish a reserve fund. After making provision for bad and doubtful debts, depreciation of assets and all other matters which ...
32A. Special reserve fund
All dividends accruing on the shares of the Corporation held by the Central Government and the Reserve Bank immediately before the date appointed by the Cen...
32B. Benevolent reserve fund
The Corporation shall establish a special fund, to be called the benevolent reserve fund. To the benevolent reserve fund shall be credited any part of...
33 General meetings
A general meeting (hereinafter referred to as the annual general meeting) shall be held annually at a place in India where there is an office of the Corpora...
34 Audit
The affairs of the Corporation shall be audited by not less than two auditors duly qualified to act as auditors of companies under sub-section (1) of 4*[sec...
34A. Appointment of local auditors
The Board may, in consultation with the auditors appointed under section 34, appoint local auditors to audit the affairs of any office or agency of the Cor...
35 Returns
The Corporation shall furnish a statement in the prescribed form of its assets and liabilities as at the close of business on the last Friday of each month,...
36 Acquisition of shares by the Central Government
 In the event of the Central Government at any time deciding to acquire the shares held by shareholders 2*[other than the Development Bank] the shareholder...
37 Liquidation of Corporation
No provision of law relating to the winding up of companies or corporations shall apply to the Corporation, and the Corporation shall not be placed in liqui...
38 Indemnity of Directors
Every Director, shall be indemnified by the Corporation against all losses and expenses incurred by him in or about the discharge of his duties, except such...
38A. Protection of action taken by Directors appointed under sections 25and 30A
No suit, prosecution or other legal proceeding shall lie against any Director [or Admistrator]3* of an industrial concern appointed by the Corporation under...
39 Declaration of fidelity and secrecy
The Corporation shall not, except as otherwise required by this Act or any other law for the time being in force, divulge any information relating to,...
40 Provision relating to income-tax and super tax
For the purposes of the Indian Income - tax Act, 1922(11 of 1922), the Corporation shall be deemed to be a company within the meaning of that Act and shall...
40A. Delegation of powers
The Board may, by general or special order, delegate to the Chairman [,Managing Director]2* or any officer of the Corporation, subject to such conditions an...
40B. Removal of difficulties
If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such p...
41 Offences
Whoever in any bill of lading, warehouse receipt or other instrument given to the Corporation where by security is given or is purported to be given to the ...
41A. Effect of Act on other laws
The provisions of this Act and of any rules or orders made there under shall have effect notwithstanding anything inconsistent therewith contained in any ot...
42 Power of Central Government to make rules
1* 2*[The Central Government may, in consultation with the Development Bank and by notification in the Official Gazette, make rules not inconsistent with th...
43 Power of Board to make regulations
The Board may, 4*[with the previous approval of the Development Bank], [and by notification in the official Gazette]5* make regulations not inconsistent wit...
Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!