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INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984
62 of 1984
The Bill seeks to convert the Industrial Reconstruction Corporation of India Limited (which was established as a company under the Companies Act, on 12th April, 1971, for the purpose of rehabilitating and reconstructing ailing industrial concerns) into a statutory corporation, to be known as the Industrial Reconstruction Bank of India (hereafter referred to as the Reconstruction Bank). The conversion of the said company into a statutory corporation has become necessary- (i) in order to overcome the inherent difficulties which have been faced by the company during the last twelve years of its existence, which have tended to inhibit its efforts to rehabilitate and reconstruct sick industrial concerns, and (ii) to invest the Reconstruction Bank with effective powers to tackle and contain the growing malaise of industrial sickness, 2. The salient features of the Bill are- (i) The establishment of the Industrial Reconstruction Bank of India which shall be wholly owned by the Central Government, and the transfer thereto of the undertaking of the company known as the Industrial Reconstruction Corporation of India Limited; (ii) The Chairman of the Industrial Reconstruction Bank of India (who shall also function as the managing director thereof) shall be appointed by the Central Government; (iii) The Reconstruction Bank will function as the principal credit and reconstruction agency for industrial revival and will coordinate the work of other institutions engaged in industrial revival activities. Besides, the Reconstruction Bank will also assist and promote industrial development and rehabilitation of industrial concerns; (iv) In regard to assisted sick industrial units, the Reconstruction Bank shall have powers to take over the management; lease out or sell the undertakings as a running concern; prepare schemes for reconstruction by scaling down the liability and submit such schemes of merger or amalgamation for approval of the Central Government and to apply to the Central Government for the suspension of all or any contracts, agreements, settlements, awards, etc. The Reconstruction Bank will also have the power if directed so to do by the High Court, to submit schemes for reconstruction of the companies in liquidation or for their amalgamation with healthy concerns and to submit such schemes to the High Court for approval; (v) The Central Government shall have powers to give to the Reconstruction Bank such directions in matters of policy involving public interest as it may think fit. 3. The notes on clauses appended to the Bill explain in detail the various provisions of the Bill. -Gaz. of Ind., 2-8-1984, Pt. II, S. 2, Ext., p. 43 (No. 39).
An Act to provide for the establishment of the Industrial Reconstruction Bank of India, and for the transfer to, and vesting in, the said Reconstruction Bank, of the undertaking of the Corporation known as the Industrial Reconstruction Corporation of India Limited, with a view to enabling the said Reconstruction Bank to function as the principal credit and reconstruction agency for Industrial reviva] and to co-ordinate similar work of the other institution engaged therein and to assist and promote industrial development, and to rehabilitate industrial concerns, and for matters connected therewith or incidental thereto. Be it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows :-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Industrial Reconstruction Bank of India Act, 1984.
(2) It shall come into force on such date1as the, Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
SECTION 02: DEFINITIONS
- In this Act, unless the context otherwise requires,-
(a) "appointed day", in relation to any provision of this Act, means the date on which such provision comes into force and any reference to the appointed day in any provision of this Act shall be construed as a reference to the commencement of that provision;
(b) "assistance" means any direct or indirect financial, managerial or technical assistance granted by the Reconstruction Bank in pursuance of any business referred to in section 18-;
(c) "assisted industrial concern" means any industrial concern to which any assistance has been given by the Reconstruction Bank;
(d) "Board" means the Board of directors of the Reconstruction Bank;
(e) "charge" includes a charge referred to insection 37-;
(f) "Corporation" means the Industrial Reconstruction Corporation of India Limited, a company formed and registered underthe Companies Act, 1956-, and having its registered office in the State of West Bengal;
(g) "Development Bank" means the Industrial Development Bank of India, established undersection 3 of the Industrial Development Bank of India Act, 1964-;
(h) "dues" means any dues payable by any person to the Reconstruction Bank in relation to any assistance given by, or any bond or debenture issued to the Reconstruction Bank, and includes interest, rent, posts, charges and commission payable in relation thereto;
(i) "industrial concern"-
(1) means any concern engaged, or to be engaged, in- (i) the manufacture, preservation or processing of goods; (ii) shipping; (iii) mining; (iv) the hotel industry;
(v) the transport of passengers or goods by road or by water or by air or by ropeway or by lift;
(vi) the generation or distribution of electricity or any other form of power;
(vii) the maintenance, repair, testing or servicing of machinery of any description or vehicles orvessels or motor boats or trailers or tractors;
(viii) assembling, repairing or packing any article with the aid of machinery or power; (ix) the development of any contiguous area of land as an industrial estate; (x) fishing or providing shore facilities for fishing or maintenance thereof; (xi) providing special or technical knowledge or other services for the promotion of industrial growth; or
(xii) the research and development of any process or product in relation to any of the matters aforesaid,
(2) and includes-
(i) an undertaking owned, controlled or managed by a company, firm or other body corporate, which is, or is to be, so engaged.
(ii) such other concern as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(J) "nationalised bank" means a corresponding new bank as defined insection 2-of the-
(i)Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970-; (ii)Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; (k) "prescribed" means prescribed by rules made under this Act;
(1) "public financial institution" means a public financial institution specified in, or under,section 4A of the Companies Act, 1956-;
(m) "Reconstruction Bank" means the Industrial Reconstruction Bank of India, established undersection 3-;
(n) "regulation" means a regulation made under this Act;
(o) "Reserve Bank" means the Reserve Bank of India constituted undersection 3 of the Reserve Bank of India Act, 1934-;
(p) "share" means a share in the capital of the Corporation;
(q) "shareholder" means a person registered by the Corporation as the holder of a share;
(r) "scheduled bank" means a bank for the time being included in the Second Schedule tothe Reserve Bank of India Act, 1934-;
(s) "State Bank" means the State Bank of India constituted undersection 3 of the State Bank of India Act, 1955;
(t) "State co-operative bank" means the principal co-operative society in a State, the primary object of which is the financing of other co-operative societies in the State;
(u) "State Financial Corporation" means a financial corporation established undersection 3orsection 3Aor an institution notified undersection 46 of the State Financial Corporations Act, 1951;
(v) "State level agency" means such institution or agency, operating in any State or Union Territory, as may be specified as its agency by the Reconstruction Bank.
SECTION 03: ESTABLISHMENT OF THE RECONSTRUCTION BANK
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be established, for the purposes of this Act, a corporation, to be known as the Industrial Reconstruction Bank of India.
(2) The Reconstruction Bank shall be a body corporate with the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act to acquire, hold and dispose of property, and to contract, and may, by that name, sue and be sued.
(3) The head office of the Reconstruction Bank shall be at Calcutta, and the Reconstruction Bank may establish offices, branches or agencies at any other place, whether in, or outside, India.
SECTION 04: AUTHORISED CAPITAL
(1) The authorised capital of the Reconstruction Bank shall be rupees two hundred crores.
(2) The initial paid-up capital of the Reconstruction Bank shall be rupees fifty crores which shall be obtained,-
(a) by the appropriation, out of the assets of the Corporation which stand transferred to the Reconstruction Bank by virtue of the provisions of section 5-, of a sum of rupees twenty crores, being an amount equal to the amount paid-up on the shares of the Corporation;
(b) by the conversion, to the extent of rupees twenty crores, of the loans granted by the Central Government to the Corporation, into the capital of the Reconstruction Bank; and
(c) by the subscription, by the Central Government, to the paid up capital of the Reconstruction Bank, of a sum of rupees ten crores.
(3) The Reconstruction Bank may increase its paid-up capital by making further issue of shares of such amount as it may think expedient, but in doing so, the Reconstruction Bank shall ensure that its total capital does not, in any case, exceed its authorised capital.
(4) The entire paid-up capital of the Reconstruction Bank shall be wholly subscribed by, and allotted to, the Central Government.
SECTION 05: UNDERTAKING OF THE CORPORATION TO BE TRANSFERRED TO THE RECONSTRUCTION BANK
(1) On such date as the Central Government may, by notification in the Official Gazette, appoint, the undertaking of the Corporation shall stand transferred to, and shall vest in, the Reconstruction Bank.
(2) For the transfer to, and vesting in, the Reconstruction Bank of the undertaking of the Corporation, the Corporation shall be given, in cash, by the Central Government an amount equal to the amount of the total paid-up capital of the Corporation.
(3) The undertaking of the Corporation shall be deemed to include all assets, business, rights, powers, authorities and privileges and all property, movable and immovable, cash balances, reserve funds, investments, book debts and all other rights and interests in, or arising out of, such property as were, immediately before the appointed day, in the ownership, possession, power or control of the Corporation whether within or outside India, and all books of account, registers, records, and all other documents of whatever nature relating thereto, and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the Corporation in relation to its undertaking.
(4) Unless otherwise expressly provided by this Act, all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the appointed day and to which to Corporation is a party or which are in favour of the Corporation, shall be of as full force and effect against or in favour of the Reconstruction Bank, and may be enforced or acted upon as fully and effectually as if, in the place of the Corporation, the Reconstruction Bank had been a party thereto or as if they had been issued in favour of the Reconstruction Bank.
(5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to the business of the undertaking which has been transferred under this section, is pending by, or against, the Corporation, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertaking of the Corporation or of anything contained in this Act, and the suit, appeal or other proceeding may be continued, prosecuted and enforced by, or against, the Reconstruction Bank.
SECTION 06: POWER OF CENTRAL GOVERNMENT TO AUTHORISE A PERSON TO TAKE OVER THE MANAGEMENT OF THE CORPORATION
(1) The Central Government may appoint, on or after the appointed day, a suitable person to take over the management of the Corporation for the purpose of winding up of the Corporation, and, where any person is so appointed, it shall be the duty of such person to bring the operations of the Corporation to a close, realise the amounts payable to the Corporation under sub-section (2) ofsection 5-, and distribute the said amount to the shareholders in accordance with their rights and interests, and after such realisation and distribution, to obtain the order of the Central Government for the dissolution of the Corporation.
(2) For the purposes of sub-section (1), the person appointed under that sub-section shall have such powers and duties of the Official Liquidator underthe Companies Act, 1956-, as are necessary to give effect to the provisions of sub-section (1) as if the Corporation were being wound up by the Court, and, for this purpose the provisions ofthe Companies Act, 1956-shall apply, subject to the modification that for the word "Court", wherever it occurs, the words "Central Government" shall be substituted.
(3) When any person is appointed by the Central Government under subsection (1), to take over the management of the Corporation,-
(a) the provisions ofthe Companies Act, 1956 -, or of any other law for the time being in force, or any instrument having effect by virtue of any Act, or other law shall, in so far as they are inconsistent with the provisions of this Act, cease to apply to, or in relation to, the Corporation;
(b) all persons holding office as Chairman and Managing Director and other Directors, of the Corporation, immediately before the appointment of the person under sub-section (1), shall be deemed to have vacated their offices as such.
(4) Notwithstanding anything contained in this Act or in any other law for the time being in force or in any agreement or contract, any person holding, immediately before the appointed day, office as the Chairman or director of the Corporation, who vacates his office as such on the appointed day by reason of the provisions of sub-section (3), shall not be entitled to any compensation from the Reconstruction Bank for the loss of office or for the premature termination of any agreement or contract relating to his employment, except such compensa- tion or other benefit which the Reconstruction Bank may grant to him, having regard to what that person would have received as an officer of the Corporation if this Act had not been passed and if he had retired from his employment in the ordinary course.
SECTION 07: TRANSFER OF THE SERVICES OF THE OFFICERS AND OTHER EMPLOYEES OF THE CORPORATION TO THE RECONSTRUCTION BANK
(1) Save as otherwise provided in sub-section (3) ofsection 6-, every officer or other employee of the Corporation shall become,.on and from the appointed day, an officer or other employee, as the case may be, of the Reconstruction Bank and shall hold his office or service in that bank on the same terms and conditions and with the same rights to gratuity and other matters as would have been admissible to him, if the undertaking of the Corporation had not been transferred to, and vested in, the Reconstruction Bank, and continue to do so unless and until his employment in the Reconstruction Bank is duly terminated or until his remuneration, terms and conditions are duly altered by the Reconstruction Bank: Provided that an officer or other employee who does not intend to continue as an employee of the Reconstruction Bank may, within ninety days from the appointed day, serve a notice of his intention to the Reconstruction Bank, and, on the expiry of the period of thirty days from the date of service of the notice, he shall cease to be an employee of the Reconstruction Bank and, on such cesser, superannuation and other benefits due to him under the terms of his employment shall be paid to him forthwith by the Reconstruction Bank as if he had retired from service.
(2) Any person who, on the appointed day, is entitled to, or is in receipt of, any superannuation or compassionate allowance or benefit from the Corporation or any provident or other fund or any authority administering such fund shall be entitled to be paid by, and to receive from, the Reconstruction Bank or any provident or other fund or any authority administering such fund, the same allowance or benefit so long as he observes the conditions on which the allowance or benefit was granted, and, if any question arises whether he has so observed such conditions, the question shall be determined by the Central Government and the decision of the Central Government thereon shall be final.
(3) Where, under the terms of any contract of service or otherwise, any person whose service becomes transferred to the Reconstruction Bank by reason of the provisions of this Act is entitled to any payment by way of gratuity or retirement benefit or compensation for any leave not availed of, or any other benefits, such person may enforce his claim against the Reconstruction Bank.
(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), no application made or promotion, increment in salary, allowance or any other benefit granted to any person, before the appointed day, which would not ordinarily have been made or granted or which would not ordinarily have been admissible under the rules or authorisation of the Corporation, or of any provident or other fund in force prior to the appointed day, shall have effect or be payable or claimable from the Reconstruction Bank or from any provident or other fund or from an authority administering such fund, unless the Central Government has, by general or special order, confirmed the appointment, promotion or increment or has directed the continued grant of such allowance or other benefit, as the case may be.
(5) Notwithstanding anything contained inthe Industrial Disputes Act, 1947-, or in any other law for the time being in force, the transfer of the services of any officer or other employee of the Corporation to the Reconstruction Bank shall not entitle such officer or other employee to any compensation under that Act or other law, and no such claim shall be entertained by any Court, tribunal or other authority.
(6) Where any person. Chairman, or other director, by whatever name called, or other employee of the Corporation has, before the appointed day, been paid a sum by way of compensation or gratuity, the Reconstruction Bank shall be entitled to claim refund of any sum so paid, if the payment is not confirmed by the Central Government by general or special order.
(7) Where one or more provident funds have been established, or maintained, by the Corporation or any other authority, for the benefit of its officers and other employees, the money debitable to the officers and other employees whose services have become transferred, by or under this Act to the Reconstruction Bank, shall, out of the monies standing on the appointed day to the credit of such provident fund, stand transferred to, and vested in, the provident fund established by the Reconstruction Bank undersection 62-.
(8) Where superannuation, welfare and other funds have been established by the Corporation for the benefit of his officers or other employees whose services stand transferred to the Reconstruction Bank, the amount standing to the credit of such fund shall stand transferred, on the appointed day, to the Reconstruction Bank for distribution to the concerned officers or other employees in accordance with their rights and obligations.
SECTION 08: DISSOLUTION OF THE CORPORATION
- (1) As soon as realisation and distribution of the amount have been made undersection 6-, the person appointed under sub-section (1) of that section shall submit his duly audited accounts to the Central Government and shall apply to the Government for orders as to the dissolution of the Corporation.
(2) The Central Government shall, after hearing such person as it may think fit, and upon perusing the accounts so audited, if satisfied that the amount has been realised and distributed in accordance with the provisions of this Act, make an order that the Corporation is dissolved from the date of the order and the Corporation shall stand dissolved accordingly.
(3) A copy of the order made by the Central Government for the dissolution of the Corporation shall be filed by the Reconstruction Bank with the Registrar of Companies within thirty days from the date of such order, and the Registrar of Companies shall give effect to the said order as if it were an order made by the Court for the dissolution of the Corporation.
(4) The provisions of this section shall have effect, notwithstanding anything to the contrary contained inthe Companies Act, 1956-, or in any other law for the time being in force.
SECTION 09: MANAGEMENT
- (1) The general superintendence, direction and management of the affairs and business of the Reconstruction Bank shall vest in a Board of directors which may exercise all powers and do all acts and things which may be exercised or done by the Reconstruction Bank.
(2) Save as otherwise provided in the regulations made under this Act, the Chairman shall also have powers of general superintendence, direction and management of the affairs and business of the Reconstruction Bank and may also. exercise all powers and do all acts and things which may be exercised or done by the Reconstruction Bank.
(3) Subject to the provisions of this Act, the Board, in discharging its functions, shall act on business principles with due regard to public interest.
(4) In the discharge of its functions under this Act, the Reconstruction Bank shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing, and if any dispute arises as to whether a question is or is not a question of such policy, the dispute shall be decided by the Central Government whose decision thereon shall be final.
SECTION 10: BOARD OF DIRECTORS
- (1) The Board shall consist of the following, namely:-
(a) a Chairman, to be appointed by the Central Government, who shall function both as the Chairman and as the managing director;
(b) a Deputy Governor of the Reserve Bank, to be nominated by that Bank;
(c) a director, to be nominated by the Development Bank;
(d) not more than fifteen directors to be nominated by the Central Government, of whom-
(i)three shall be officials of the Central Government,
(ii)not more than three shall be from the public financial institutions,
(iii)not more than five shall be from the State Bank, nationalised banks and the State Financial Corporations,
(iv)not more than four shall be from among persons who have in the opinion of the Central Government, special knowledge of, and professional experience in science technology, economics, industry, industrial co-operatives law, industrial finance, investment, accountancy, marketing or any other matter, the special knowledge of, or
professional experience in which would in the opinion of the Central Government, be useful to the Reconstruction Bank.
(2) A director nominated under sub-section (1) shall hold office during the pleasure of the authority nominating him.
2[(3) Subject to the provisions of sub-section (2), a director nominated under clause (c) or clause (d) of sub-section (1) and not being an official of Government or not being an official or whole time director of the Development Bank or a public financial institution or the State Bank or a nationalised bank or a State Financial Corporation, shall hold office for such term, not exceeding three years, as the authority nominating him may specify in this behalf and thereafter until his successor enters upon his office, and shall be eligible for re-nomination: Provided that no such director shall hold office continuously for a period exceeding six years.]
SECTION 11: DISQUALIFICATIONS OF MEMBERSHIP OF THE BOARD
- No person shall be qualified to be a member of the Board if-
(a) he has been removed or dismissed from service of -
(i) Government, or
(ii) Reserve Bank, State Bank or any other bank, or
(iii) any public financial institution or State Financial Corporation or
(iv) any other corporation owned or controlled by Government on a charge of corruption or bribery, or
(b) he is, or at any time has been adjudicated an insolvent or has suspended payment of his debts or has compounded with his creditors; or
(c) he is a lunatic and stands so declared by a competent court or
(d) he is or has been convicted of any offence, which, in the opinion of the Central Government, involves moral turpitude.
SECTION 12: TERM OF OFFICE, SALARIES AND ALLOWANCES OF CHAIRMAN
- (1) The Chairman shall hold office for such term not exceeding five years as the Central Government may specify in this behalf and any person so appointed shall be eligible for re-appointment for a like term.
(2) Notwithstanding anything contained in sub-section (1),-
(a) the Central Government shall have the right to terminate the term of office of the Chairman at any time before the expiry of the term specified under subsection (1) by giving him notice of not less than three months in writing or three months' salary and allowances in lieu of such notice, and the Chairman shall also have the right to relinquish his office at any time before the expiry of the term specified under sub-section (1) by giving, to the Central Government notice of not less than three months in writing,
(b) the Central Government may, at any time, remove the Chairman from office
Provided that no person shall be removed from his office under this clause unless he has been given a reasonable opportunity of showing cause against his removal.
(3) Where any vacancy occurs in the office of the Chairman, the Central Government shall appoint a suitable person to discharge the functions of the Chairman.
(4) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Central Government may appoint a suitable person to function as the Chairman until the day on which the Chairman resumes the charge of his functions.
(5) The Chairman shall be a whole-time officer of the Reconstruction Bank and shall receive such salaries, allowances and other benefits, and shall be subject to such other terms and conditions, as may be determined by the Central Government.
Provided that the Board may, if it is of opinion, that it is necessary in the public interest so to do, permit the Chairman to undertake, at the request of the Central Government or the Reserve Bank, such part time honorary work as is not likely to interfere with his duties as Chairman.
SECTION 13: DISCLOSURE OF INTEREST
No member of the Board shall have an interest, direct or indirect, in any business, industry or concern to which any assistance has been given or is to be given by the Reconstruction Bank under this Act and if any such member acquires such interest at any time during the continuance of such assistance, he shall immediately disclose it to the Board and shall either resign his membership of the Board or dispose of his interest in such manner and within such time as the Board may direct.
SECTION 14: MEETINGS OF THE BOARD
(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided for in the regulations.
(2) If, for any reason, the Chairman is unable to attend any meeting of the Board, any other director nominated by the Chairman in this behalf, and in the absence of such nomination, any director elected by the directors present, from amongst themselves, shall preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.
(4) Save as otherwise provided under sub-section (3), every director of the Board shall have one vote.
SECTION 15: EXECUTIVE COMMITTEE AND OTHER COMMITTEES
(1) The Board may constitute an Executive Committee consisting of such number of directors as may be provided for in the regulations.
(2) The Executive Committee shall discharge such functions as may be provided for in the regulations, or, as may be delegated to it, by the Board.
(3) The Board may constitute such other committees, whether consisting only of directors or only of other persons or partly of directors and partly of other persons, for such purpose or purposes, as it may think fit.
(4) The Executive Committee or any other committee constituted under this section shall meet at such times and places and shall observe such rule of procedure in regard to the transaction of business at its meetings as may be provided for in the regulations.
SECTION 16: EXISTENCE OF VACANCY IN, OR DEFECT IN THE CONSTITUTION OF, THE BOARD OR DEFECT OR DISQUALIFICATION OF A MEMBER NOT TO INVALIDATE THE PROCEEDINGS OF THE BOARD
(1) No act or proceeding of the Board or of any Executive or other committee constituted by it shall be invalid merely on the ground of the existence of any vacancy in, or any defect in the constitution of, such Board, or committee, as the case may be
(2) All acts done by a person acting in good faith as a member of the Board or of any committee constituted by it shall be valid, notwithstanding that it may afterwards be discovered that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision of this Act or any other law for the time being in force:
Provided that nothing in this section shall be deemed to give validity to any act of a member of the Board or of any committee after his appointment has been shown to the Reconstruction Bank to be invalid or to have terminated.
SECTION 17: FEES AND ALLOWANCES OF DIRECTORS AND MEMBERS OF COMMITTEES
The directors and members of the committee shall be paid such fees and allowances as may be provided for in the regulations for attending the meetings of the Board or of any committee constituted in pursuance of this Act or for attending to any other work of the Reconstruction Bank. Provided that no fees shall be payable to the Chairman or to any other director or member who is an official of the Government, or, to a Deputy Governor of the Reserve Bank or to any official of the Development Bank or Reconstruction Bank.
SECTION 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, reorganisation, 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;
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