The International Finance Corporation (Status, Immunities and Privileges) Act, 1958
Administered Ministry: Ministry of Finance / Department of Economic Affairs
Act details
| Short title | The International Finance Corporation (Status, Immunities and Privileges) Act, 1958 |
|---|---|
| Long title | 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. |
| Act number | 42 of 1958 |
| Act year | 1958 |
| Enactment date | 17 Oct 1958 |
| Ministry | Ministry of Finance / Department of Economic Affairs |
| Department | Department of Economic Affairs |
| Jurisdiction | Central (Parliament of India) |
| Sections | 4 |
| Schedules | 1 |
| Status | Not repealed |
| Last checked on India Code | 4 Nov 2026 |
| Source | India Code, Government of India |
Summary
Summary of International Finance Corporation (Status, Immunities and Privileges) Act, 1958
Key Provisions and Implications in the Context of Revenue
1. Definitions: - "Agreement": Refers to the international agreement for the establishment and operation of the International Finance Corporation (IFC), which may imply terms affecting revenue generation or exemption.
• "Corporation": Specifically denotes the International Finance Corporation (IFC), focusing on its financial operations and revenue streams.
2. Status, Immunities, and Privileges with Revenue Implications:
• Tax Exemptions: The Corporation is exempt from customs duties and taxes on goods sold, and service charges, directly impacting its revenue and operational costs.
• Amendment Power for Revenue Adjustments: The Central Government can amend the Schedule to reflect changes in the Agreement, potentially influencing revenue streams, subject to parliamentary approval.
3. Rule Making Authority for Revenue Management: - Central Government: Empowered to make rules for effective implementation, including those that may govern revenue collection, management, or exemption for the IFC.
• Parliamentary Oversight for Transparency: Ensures all rules, including those affecting revenue, are laid before Parliament for scrutiny.
Legislative history
Legislative History:
The International Finance Corporation (Status, Immunities and Privileges) Act, 1958
Act Title - The International Finance Corporation (Status, Immunities and Privileges) Act, 1958
Act Number / Year - 42 of 1958
Act ID (India Code) - 195842
Presidential Assent Date - October 17, 1958
Enforcement Date - October 17, 1958
Nodal Ministry - Ministry of Finance
Precedent & Historical Rationale
● Implementation of Multilateral Treaty Obligations: Enacted to give statutory force of law in India to Article VI of the International Agreement establishing the International Finance Corporation (IFC), an affiliate of the World Bank.
● Operational Autonomy and Immunities Framework: Formulated to confer legal personality, immunity from judicial process, tax exemptions, and asset protection on the Corporation and its officers to facilitate international private enterprise investments in member nations.
Parliamentary Trajectory & Enactment
● Formulation: Introduced by the Ministry of Finance to satisfy the mandatory provision (Section 10 of Article VI) requiring member countries to enact enabling national legislation.
● Parliamentary Passage: Debated and passed by both Houses of Parliament in 1958.
● Presidential Assent: Received Presidential Assent on October 17, 1958.
● Enforcement: Enforced on October 17, 1958.
Source: Official Record of Parliament, India Code, and Ministry of Finance.