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Schedule 1 of The International Finance Corporation (Status, Immunities and Privileges) Act, 1958

THE SCHEDULE [See section 3] PROVISIONS OF THE AGREEMENT WHICH SHALL HAVE FORCE OF LAW ARTICLE III SECTION 1. Financing Operations The Corporation may make investments of its funds in productive private enterprises in the territories of its members. The existence of a government or other public interest in such an enterprise shall not necessarily preclude the Corporation from making an investment therein. SECTION 5. Applicability of Certain Foreign Exchange Restrictions Funds, received by or payable to the Corporation in respect of an investment of the Corporation made in any member’s territories pursuant to Section 1 of this Article shall not be free, solely by reason of any provision of this Agreement, from generally applicable foreign exchange restrictions, regulations and controls in force in the territories of that member. ARTICLE VI STATUS, IMMUNITIES AND PRIVILEGES SECTION 1. Purposes of Article To enable the Corporation to fulfill the functions with which it is entrusted, the status, immunities and privileges set forth in this Article shall be accorded to the Corporation in the territories of each member. SECTION 2. Status of the Corporation The Corporation shall possess full juridical personality and, in particular, the capacity:

(i)to contract;
(ii)to acquire and dispose of immovable and movable property;
(iii)to institute legal proceedings. SECTION 3. Position of the Corporation with regard to Judicial Process Actions may be brought against the Corporation only in a court of competent jurisdiction in the territories of a member in which the Corporation has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or driving claims from members. The property and assets of the Corporation shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Corporation. SECTION 4. Immunity of Assets from Seizure Property and assets of the Corporation, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action. SECTION 5. Immunity of Archives The archives of the Corporation shall be inviolable. SECTION 6. Freedom of Assets from Restrictions To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of Article III, Section 5, and the other provisions of this Agreement, all property and assets of the Corporation shall be free from restrictions, regulations, controls and moratoria of any nature. SECTION 7. Privilege for Communications The official communications of the Corporation shall be accorded by each member the same treatment that it accords to the official communications of other members. SECTION 8. Immunities and Privileges of Officers and Employees All Governors, Directors, Alternates, officers and employees of the Corporation:
(i)shall be immune from legal process with respect to acts performed by them in their official capacity;
(ii)not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;
(iii)shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members. SECTION 9. Immunities from Taxation

(a)The Corporation, its assets, property, income and its operations and transactions authorised by this Agreement, shall be immune from all taxation and from all customs duties. The Corporation shall also be immune from liability for the collection or payment of any tax or duty.
(b)No tax shall be levied on or in respect of salaries and emoluments paid by the Corporation to Directors, Alternates, officials or employees of the Corporation who are not local citizens, local subjects, or other local nationals.
(c)No taxation of any kind shall be levied on any obligation or security issued by the Corporation (including any dividend or interest thereon) by whomsoever held:
1. (i)which discriminates against such obligation or security solely because it is issued by the Corporation; or
2. (ii)if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Corporation.
(d)No taxation of any kind shall be levied on any obligation or security guaranteed by the Corporation (including any dividend or interest thereon) by whomsoever held:
1. (i)which discriminates against such obligation or security solely because it is guaranteed by the Corporation; or
2. (ii)if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Corporation. SECTION 10. Waiver The Corporation in its discretion may waive any of the privileges and immunities conferred under this Article to such extent and upon such conditions as it may determine.

Summary

The Schedule lists the specific parts of the International Finance Corporation Agreement that have the force of law in India under Section 3 of the Act, which applies to the whole of India under Section 1.
Under Article III, Section 1, the Corporation can invest in productive private businesses in member countries, even if there is a government or public interest in those businesses.
Under Article VI, Section 2, the Corporation has full legal personality, meaning it has the specific legal capacity to make contracts, buy and sell property, and start court cases.
Under Article VI, Section 3, legal cases can only be brought against the Corporation in a court where the Corporation has an office, has an agent to accept legal papers, or has issued or guaranteed securities, but member countries cannot sue it.
Under Article VI, Section 9, the Corporation is generally free from all taxes and customs duties, but Section 3 of the Act states this does not allow the Corporation to import goods tax-free and sell them without restrictions, nor does it exempt them from taxes included in the price of goods or charges for services.
Under Article VI, Section 10, the Corporation is allowed to waive, meaning voluntarily give up, any of its privileges and immunities if it decides to do so.

Practical examples

1In June 2026, an Indian company called Sunrise Solar Private Limited wants to get an investment from the International Finance Corporation. Even though the Indian government owns a ten percent share in Sunrise Solar, the Corporation can still invest in it because Article III, Section 1 allows investments in private businesses even when there is a public interest.

2In September 2026, a local landlord in New Delhi named Rajesh Kumar enters into a lease agreement with the International Finance Corporation to rent out an office building. When signing the lease and purchasing furniture, the Corporation acts under Article VI, Section 2, which gives it the legal power to make contracts and buy property just like any regular company.

3In October 2026, a local municipal council tries to charge the International Finance Corporation a general income tax on its investment earnings in India. The Corporation points to Article VI, Section 9 of the Schedule, which grants it complete immunity from all taxation on its income, meaning the council cannot collect any tax from it.

FAQ

1. Can a member country of the International Finance Corporation file a lawsuit against it under the Schedule?

No. Article VI, Section 3 of the Schedule clearly states that no legal actions can be brought against the Corporation by its member countries or by anyone who is deriving claims from members.

2. Does the tax immunity under Section 9 of Article VI let the Corporation import any goods into India and sell them without paying customs duties?

No. Section 3 of the Act limits Section 9 of Article VI, stating that the Corporation cannot import goods into India free of customs duties without restrictions on their subsequent sale.

3. Can the Corporation choose to give up its legal privileges and immunities in a specific case?

Yes. Under Article VI, Section 10, the Corporation has the sole discretion to waive any of its privileges and immunities under the terms and conditions it chooses.

4. Where can a private person bring a legal action against the Corporation?

Under Article VI, Section 3, a lawsuit can only be brought in a court of competent jurisdiction in a member country's territory where the Corporation has an office, has appointed an agent to accept legal papers, or has issued or guaranteed securities.

5. Are the archives of the Corporation open to search by government officials?

No. Article VI, Section 5 states that the archives of the Corporation are inviolable, meaning they cannot be broken into, searched, or seized.

Test yourself

Q1.Under Article VI, Section 2 of the Schedule, what legal capacity does the Corporation possess?

Q2.According to Section 3 of the Act, which of the following is NOT a restriction on the tax exemptions listed under Section 9 of Article VI of the Agreement?

Q3.Under Article VI, Section 3 of the Schedule, when are the assets of the Corporation immune from seizure, attachment, or execution?

Q4.Under Article III, Section 5, how do generally applicable foreign exchange restrictions in a member's territory apply to funds received by the Corporation?

Q5.According to Article VI, Section 8, what kind of immunity do the officers and employees of the Corporation enjoy regarding their actions?

Q6.Under Article VI, Section 4 of the Schedule, what are the property and assets of the Corporation immune from by legislative or executive action?

4PreviousSection 4 Power to make rules.

←Section 4

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Schedule 1 of The International Finance Corporation (Status, Immunities and Privileges) Act, 1958

(i)to contract;
(ii)to acquire and dispose of immovable and movable property;
(iii)to institute legal proceedings. SECTION 3. Position of the Corporation with regard to Judicial Process Actions may be brought against the Corporation only in a court of competent jurisdiction in the territories of a member in which the Corporation has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or driving claims from members. The property and assets of the Corporation shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Corporation. SECTION 4. Immunity of Assets from Seizure Property and assets of the Corporation, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action. SECTION 5. Immunity of Archives The archives of the Corporation shall be inviolable. SECTION 6. Freedom of Assets from Restrictions To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of Article III, Section 5, and the other provisions of this Agreement, all property and assets of the Corporation shall be free from restrictions, regulations, controls and moratoria of any nature. SECTION 7. Privilege for Communications The official communications of the Corporation shall be accorded by each member the same treatment that it accords to the official communications of other members. SECTION 8. Immunities and Privileges of Officers and Employees All Governors, Directors, Alternates, officers and employees of the Corporation:
(i)shall be immune from legal process with respect to acts performed by them in their official capacity;
(ii)not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;
(iii)shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members. SECTION 9. Immunities from Taxation

(a)The Corporation, its assets, property, income and its operations and transactions authorised by this Agreement, shall be immune from all taxation and from all customs duties. The Corporation shall also be immune from liability for the collection or payment of any tax or duty.
(b)No tax shall be levied on or in respect of salaries and emoluments paid by the Corporation to Directors, Alternates, officials or employees of the Corporation who are not local citizens, local subjects, or other local nationals.
(c)No taxation of any kind shall be levied on any obligation or security issued by the Corporation (including any dividend or interest thereon) by whomsoever held:
1. (i)which discriminates against such obligation or security solely because it is issued by the Corporation; or
2. (ii)if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Corporation.
(d)No taxation of any kind shall be levied on any obligation or security guaranteed by the Corporation (including any dividend or interest thereon) by whomsoever held:
1. (i)which discriminates against such obligation or security solely because it is guaranteed by the Corporation; or
2. (ii)if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Corporation. SECTION 10. Waiver The Corporation in its discretion may waive any of the privileges and immunities conferred under this Article to such extent and upon such conditions as it may determine.

Summary

The Schedule lists the specific parts of the International Finance Corporation Agreement that have the force of law in India under Section 3 of the Act, which applies to the whole of India under Section 1.
Under Article III, Section 1, the Corporation can invest in productive private businesses in member countries, even if there is a government or public interest in those businesses.
Under Article VI, Section 2, the Corporation has full legal personality, meaning it has the specific legal capacity to make contracts, buy and sell property, and start court cases.
Under Article VI, Section 3, legal cases can only be brought against the Corporation in a court where the Corporation has an office, has an agent to accept legal papers, or has issued or guaranteed securities, but member countries cannot sue it.
Under Article VI, Section 9, the Corporation is generally free from all taxes and customs duties, but Section 3 of the Act states this does not allow the Corporation to import goods tax-free and sell them without restrictions, nor does it exempt them from taxes included in the price of goods or charges for services.
Under Article VI, Section 10, the Corporation is allowed to waive, meaning voluntarily give up, any of its privileges and immunities if it decides to do so.