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Section 6 of The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997

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.

Summary

With effect from the appointed day, all concessions granted to the Reconstruction Bank are deemed granted to the Company.
This includes all fiscal, meaning tax and financial, concessions.
This also includes all licences, benefits, privileges, and exemptions.
These concessions must have been granted under some law active at the time.

Practical examples

1The Reconstruction Bank had a special tax-free concession on interest earned from infrastructure development bonds. On the appointed day, the Company did not have to apply for a new tax concession, because this fiscal privilege automatically transferred to the Company.

2The Reconstruction Bank held a specialized banking license to operate in foreign exchange transactions. Under Section 6, this operating license was legally deemed to be granted to the Company, allowing them to continue foreign exchange services without interruption.

FAQ

1. What happens to the licences held by the Reconstruction Bank?

All licences held by the Reconstruction Bank are deemed to have been granted to the Company from the appointed day.

2. Are tax exemptions covered under Section 6?

Yes, all fiscal concessions, benefits, and exemptions are deemed to be granted to the Company.

3. From when do these concessions transfer to the Company?

They transfer with effect from the appointed day.

Test yourself

Q1.When do the concessions, licences, and exemptions transfer to the Company?

Q2.Which of the following is specifically mentioned as transferring under Section 6?

Q3.Under Section 6, the concessions must have been granted to which entity originally?

Q4.What does the term "fiscal" mean as used in "fiscal and other concessions" in Section 6?

Q5.Does Section 6 require the Company to apply for new licences that the Reconstruction Bank already possessed?

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