6. Concession, etc., to be deemed to have been granted to Company.—With effect from the
appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to
the Reconstruction Bank in connection with the affairs and business of the Reconstruction Bank under
any law for the time being in force shall be deemed to have been granted to the Company.
7. Tax exemption or benefit to continue to have effect.—(1) Notwithstanding anything contained
in the Income-tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to
tax or income, profits or gains, the Company shall not be liable to pay income-tax or any other tax for
a period of five years computed from the appointed day in respect of any income, profits or gains
derived, or any amount received by the Company.
(2) The transfer and vesting of the undertakings or any part thereof in terms of section 3 shall not
be construed as a transfer within the meaning of the Income-tax At, 1961 (43 of 1961) for the purposes
of capital gains.
8. Guarantee to be operative.—Any guarantee given for or in favour of the Reconstruction Bank
with respect to any loan, lease finance or other assistance shall continue to be operative in relation to
the Company.
9. Arrangement with Company on appointment of directors to prevail.—(1) Where any
arrangement entered into by the company with an industrial or other concern provides for the
appointment by the company of one or more directors of such concern, such provision and any
appointment of directors made in pursuance thereof shall be valid and effective notwithstanding
anything to the contrary contained in the Companies Act, 1956 (1 of 1956) or in any other law for the
time being in force or in the memorandum, articles of association or any other instrument relating to
such concern, and any provision regarding share qualification, age limit, number of directorships,
removal from office of directors and such like conditions contained in any such law or instrument
aforesaid, shall not apply to any director appointed by the company in pursuance of the arrangement as
aforesaid.
(2) Any director appointed in pursuance of sub-section (7) shall—
(a) hold office during the pleasure of the company and may be removed or substituted by any
person by order in writing by the company;
(b) not incur any obligation or liability by reason only of his being a director or for anything
done or omitted to be done in good faith in the discharge of his duties as a director or anything in
relation thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the
number of directors liable to such retirement.
10. Act 18 of 1891 to apply to the books of Company.—The Company shall be deemed to be a
bank for the purposes of the Bankers' Books Evidence Act, 1891.
11. Shares, bonds and debentures to be deemed to be approved securities.—Notwithstanding
anything contained in any other law for the time being in force, the shares, bonds and debentures of the
Company shall be deemed to be approved securities for the purposes of the Indian, Trusts Act, 1882 (2
of 1882) , the Insurance Act, 1938 (4 of 1938) 2***.
12. Substitution in Act, rules or regulations of company in place of the Reconstruction Bank.-
—In every Act, rule or regulation in force on the appointed day,—
1. The words and figures "and the Banking Regulation Act, 1949(10 of 1949)" shall be omitted by Act 4 of 2013, s. 17 and
the Schedule (w.e.f. 18-1-2013).
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(a) for the words “Industrial Reconstruction Bank of India”, wherever they occur, the words
“Industrial Investment Bank of India Limited” shall be substituted;
(b) for the words “Reconstruction Bank”, wherever they occur, the words “Industrial
Investment Bank” shall be substituted.
13. Repeal and saving of Act 62 of 1984.---(1) On the appointed day, the Industrial Reconstruction
Bank of India Act, 1984 shall stand repealed.
(2) Notwithstanding the repeal of the Industrial Reconstruction Bank of India Act, 1984,--
(a) the Company shall, so far as may be, comply with the provisions of Chapter VII of the Act
so repealed for any of the purposes related to the annual accounts and audit of the Reconstruction
Bank;
(b) the provisions of Chapter VIII of the Act so repealed will continue to be applicable in respect
of the arrangements entered into by the Reconstruction Bank with an industrial concern under
section 18 thereof up to the appointed day and the Company will be entitled to act upon and enforce
the same as fully and effectually as if this Act had not been enacted.