3. Vesting in the Central Government of the shares held by the Company.—(1) On the appointed
day, all the shares held by the Company in the share capital of the Bolani Ores Limited shall, by virtue of
this Act, stand transferred to, and shall vest in, the Central Government.
(2) All the shares which have vested in the Central Government under sub-section (1) shall, by force
of such vesting, be freed and discharged of all trusts, liabilities, obligations, mortgages, charges, liens and
other encumbrances affecting them, and any attachment or injunction or any decree or order of any court,
tribunal or other authority restricting the use of such shares in any manner shall be deemed to have been
withdrawn.
4. Payment of amount to the Company.—(1) For the transfer to, and vesting in, the Central
Government under section 3 of the shares held by the Company in the Bolani Ores Limited, the Central
Government shall, within thirty days from the appointed day, pay to the Company in cash an amount of
forty-nine thousand five hundred rupees.
(2) Where the Central Government fails to pay to the Company the amount specified in
sub-section (1) within the period specified in that sub-section, the Central Government shall pay on the
said amount simple interest at the rate of six per cent. per annum from the appointed day till the date of
payment.
5. Allocation of shares to the Steel Authority of India.—(1) All the shares held by the Company in
the Bolani Ores Limited which have vested in the Central Government by virtue of section 3 shall,
immediately after they have so vested, stand transferred to, and shall vest in, the Steel Authority of India.
(2) The amount paid by the Central Government for the shares which stand transferred to, and vested
in, the Steel Authority of India under sub-section (1) shall be deemed to be the contribution by the Central
Government to the equity capital of the Steel Authority of India and the Steel Authority of India shall
issue (if necessary, after amending its memorandum and articles of association) to the Central
Government forty-nine fully paid-up shares of the face value of one thousand rupees each and pay to that
Government five hundred rupees in cash.