Industrial Reconstruction Bank of India Act,1984
Act No : 62
Section :
Objects and business of the Reconstruction Bank.
18. Objects and business of the Reconstruction Bank.- (1) The Reconstruction Bank shall function as the principal credit and reconstruction agency for industrial revival by undertaking modernisation, expansion, re-organisation, diversification or rationalisation of industries, and by co-ordinating similar work of other institutions engaged therein, and shall assist and promote industrial development, reconstruction and revival, and undertake rehabilitation of industrial concerns, by providing or procuring assistance and operating schemes for the same, and may, for attaining the said objects, carry on and transact all or any of the following businesses, namely:-- (a) granting loans and advances (including working capital) to any industrial concern or subscribing to or purchasing or underwriting the issue of stocks, shares, bonds or debentures of any industrial concern or converting the dues in respect of such loans or debentures into the shares of any industrial concern; (b) guaranteeing, counter-guaranteeing or providing indemnity, as the case may be, in respect of-- (i) loans raised by an industrial concern from any scheduled bank or State co-operative bank or any public financial institution or any other prescribed institution or agency in, or outside, India; (ii) deferred payments due from an industrial concern; (iii) the performance obligations of any contract undertaken by an industrial concern, including repayment of any advance obtained by such industrial concern in connection with such contract; (c) subscribing to or purchasing or underwriting the issue of stocks, shares, bonds or debentures of any institution which may be notified by the Central Government in this behalf; (d) providing credit to any State level agency or other prescribed institution or agency for grant of loans and advances to industrial concerns; (e) providing or obtaining credit from other public financial institutions, scheduled banks and State co-operative banks, for grant of loans and advances to or to furnish guarantees on behalf of the industrial concern; (f) providing infrastructural facilities and raw materials; (g) providing machinery and other equipment on lease or hirepurchase basis; 562 (h) providing consultancy and merchant banking services in and outside India relating to reconstruction and development of any industrial concern or industry in general; (i) accepting or discounting of bills of exchange and promissory notes, made, drawn, accepted or endorsed by any industrial concern or by any person selling capital goods manufactured by one industrial concern to another industrial concern; (j) promoting, owning, taking over, managing industrial concerns and acting as authorised person, where so appointed by the Central Government, to manage an industrial concern, including ancillaries; (k) transferring or acquiring for consideration any instrument relating to loans and advances; (l) providing technical, legal, administrative and marketing assistance, promoting, assisting and financing mergers, amalgamation or reconstruction of an industrial or business concern; (m) providing managerial assistance to industrial concerns including nationalised undertakings, by deputing officers from its own cadre or a separate management pool constituted for the purpose; (n) undertaking research and surveys for evaluating or dealing with marketing or investments, carrying on techno- economic studies in connection with reconstruction and development of industry and establishment of institutes for such purposes including training of personnel; (o) granting, opening, issuing, confirming or endorsing letters of credit and negotiating or collecting bills and other documents drawn thereunder; (p) forming, or controlling, of subsidiaries for carrying out any of its functions or to carry on such other activities conducive to its business; (q) acting as an agent of-- (i) Central Government or State Government; (ii) Reserve Bank, State Bank, scheduled bank, State co-operative bank, public financial institutions, State Financial Corporations; (iii) such other Government or person as the Central Government may authorise; and to appoint one or more of those institutions, or agencies, or any other prescribed person, as its agent; (r) performing functions entrusted to or required of it by Central Government under this Act or any other law; (s) doing any kind of business or assignment in or outside the country which the Central Government may authorise; (t) collecting information from all concerned agencies relating to industrial sickness and industrial development; 563 (u) preparing guidelines to assist the Central Government in formulating policy framework to reconstruct, revive or rehabilitate industrial concerns or any industry; (v) granting loans for housing and other purposes to the officers and other employees (including persons employed on contract) of the Reconstruction Bank; (w) generally doing such other acts and things as may be incidental to or consequential upon the exercise of its powers or of its duties under this Act or any other law, including sale or transfer of any of its assets. (2) The Reconstruction Bank may receive in consideration of any of the services mentioned in sub-section (1), such commission, brokerage, interest, rent, remuneration or fees, as may be agreed upon. (3) The Reconstruction Bank shall not grant any loan or advance or other assistance on the security of its own bonds or debentures.
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