Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
No: 58 Dated: Dec, 17 2002
Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
(Act No. 58 of 2002)
An Act to provide for the transfer and vesting of the undertaking (excluding the specified undertaking) of the Unit Trust of India to the specified company to be formed and registered under the Companies Act, 1956, and the transfer and vesting of the specified undertaking of the Unit Trust of India in the Administrator and for matters connected therewith or incidental thereto and also to repeal the Unit Trust of India Act, 1963.
BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. Short title and commencement.—(1) This Act may be called the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
(2) It shall be deemed to have come into force on the 29th day of October, 2002.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “Administrator” means a person or a body of persons appointed as Administrator under section 7;
(b) “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint under section 4;
(c) “bank” shall have the meaning assigned to it in clause (d) of section 2 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993);
(d) “Development Bank” means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964);
(e) “financial institution” shall have the meaning assigned to it in clause (h) of section 2of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993);
(f) “Life Insurance Corporation of India” means the Life Insurance Corporation of India established under sub-section (1) of section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
(g) “Schedule” means Schedules I and II to this Act;
(h) “specified company” means a company to be formed and registered under the Companies Act, 1956 (1 of 1956) and whose entire capital is subscribed by such financial institutions or banks as may be specified by the Central Government, by notification in the Official Gazette, for the purpose of transfer and vesting of the undertaking;
(i) “specified undertaking” includes all business, assets, liabilities and properties of the Trust representing and relatable to the schemes and Development Reserve Fund specified in the Schedule I;
(j) “State Bank” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(k) “Trust” means the Unit Trust of India established under sub-section (1) of section 3 of the Unit Trust of India Act, 1963 (52 of 1963);
(l) “undertaking” includes all business, assets, liabilities and properties of the Trust representing and relatable to the schemes and plans specified in the Schedule II;
(m) “unit” means a unit issued under a unit scheme made under section 21 of the Unit Trust of India Act, 1963 (52 of 1963).
CHAPTER II
TRANSFER AND VESTING OF THE UNDERTAKING OF TRUST IN THE SPECIFIED COMPANY AND
TRANSFER AND VESTING OF THE SPECIFIED UNDERTAKING OF TRUST IN THE ADMINISTRATOR
3. Transfer of initial capital.—(1) On the appointed day, the initial capital of the Trust, contributed by the Development Bank, the Life Insurance Corporation, the State Bank and the subsidiary banks and other institutions under sections 4 and 4A of the Unit Trust of India Act, 1963(52 of 1963), as it stood immediately before the commencement of this Act, shall stand transferred to, and vest in, the Central Government.
(2) The initial capital contributed by the Development Bank, the Life Insurance Corporation, the State Bank and the subsidiary banks and other institutions shall be refunded, by the Central Government, to such extent as may be determined by it, having regard to the book value, the assets and liabilities of the Trust.
4.Undertaking of Trust to vest in specified company and specified undertaking of Trust to vest in Administrator.—(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.