Section 4 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
- (1)On such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be transferred to, and vest in,--
- (a)the specified company, the undertaking (excluding the specified undertaking) of the Trust for such consideration and on such terms and conditions as may be mutually agreed upon between the Central Government and the subscribers to the capital of the specified company;
- (b)the Administrator, the specified undertaking of the Trust.
- (2)The decision of the Central Government, as to whether any business, assets, liabilities or properties represent or relate to the undertaking or specified undertaking, shall be final: Provided that any business, asset or property which is not represented or related to the undertaking or specified undertaking, shall vest in the Central Government.
Summary
- The Central Government picks a specific date and announces it publicly in the Official Gazette.
- On that date, the regular business of the Trust is transferred to a new specified company.
- At the same time, the special or specified undertaking of the Trust is transferred to the Administrator.
- If there is any leftover business, asset, or property that does not fit into those two categories, it goes straight to the Central Government.
Practical examples
FAQ
1. How does everyone know when the transfer happens?
The Central Government announces the exact date by publishing a notification in the Official Gazette.
2. Who takes over the main business of the old Trust?
The regular undertaking of the Trust goes to the new specified company.
3. Who takes over the specified undertaking?
The Administrator takes over the specified undertaking.
4. What happens to property that doesn't belong to either undertaking?
Any leftover property vests in the Central Government.
Test yourself
Q1.Under Section 4 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, where does the undertaking of the Trust vest?
Q2.Under Section 4 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, where does the specified undertaking of the Trust vest?
Q3.Under Section 4 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, how is the date of this transfer established?
Q4.Under Section 4 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, what happens to any business, asset, or property that is not represented or related to either undertaking?
Q5.Under Section 4 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, which entity makes the final decision on the vesting date?