Primary law, Tamil Nadu land law
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993, Act No. 23 of 1993, was enacted by Parliament on 2 April 1993 and is deemed to have come into force on 1 October 1992. It transferred the entire undertaking of the Industrial Finance Corporation of India to the Industrial Finance Corporation of India Limited, including its land, buildings, contracts, liabilities and employees, and repealed the Industrial Finance Corporation Act, 1948. The supplied text, updated as on 15 May 2026, reflects an amendment made by the Banking Laws (Amendment) Act, 2012.
What the Act does
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 converted the statutory undertaking of the Industrial Finance Corporation of India into a company structure. The Central Government appointed 1 July 1993 as the date on which the undertaking transferred to and vested in the Industrial Finance Corporation of India Limited.
The Act also repealed the Industrial Finance Corporation Act, 1948 on the appointed day, while preserving specified requirements relating to the Corporation's annual accounts.
Property and financial interests transferred
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 transferred the Corporation's complete undertaking, not merely its business name. The transferred property and interests included:
- Lands, buildings, vehicles and other movable and immovable property.
- Tenancies, leases, deposits, investments and book debts.
- Loans, advances, guarantees, securities and management interests in industrial concerns.
- Contracts, deeds, bonds, powers of attorney and working arrangements.
- Records, registers, accounts and documents.
- Borrowings, liabilities and obligations within or outside India.
Existing instruments ceased to operate against the Corporation and instead became fully enforceable by or against the Company. Pending proceedings and existing causes of action relating to the undertaking could also continue by or against the Company.
Who may be affected
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 may matter to a property buyer, owner, tenant, borrower or professional dealing with land, leases, securities, loans or contracts formerly held by the Industrial Finance Corporation of India. The statutory transfer means that the Industrial Finance Corporation of India Limited replaced the Corporation in those interests and obligations.
Shareholders of the Corporation became shareholders of the Company to the extent of the face value of their existing shares. Guarantees given for loans, lease finance or other assistance continued to operate in relation to the Company.
Employees, concessions and tax treatment
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 transferred eligible officers and employees to the Company on the same tenure, remuneration, terms, rights and benefits. Employees could opt not to continue within six months of the appointed day, in which case they were treated as having resigned.
Fiscal concessions, licences, privileges and exemptions granted to the Corporation continued for the Company. Existing income tax exemptions and benefits also continued, and the statutory vesting was not treated as a transfer for capital gains purposes.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did land owned by the Industrial Finance Corporation of India pass to the Company?
Yes. Lands, buildings and other movable and immovable property connected with the undertaking vested in the Industrial Finance Corporation of India Limited on the appointed day.
What happened to an existing lease or tenancy involving the Corporation?
Tenancies and leases formed part of the transferred undertaking. Existing contracts and instruments became enforceable by or against the Industrial Finance Corporation of India Limited instead of the Corporation.
Were pending legal proceedings cancelled by the transfer?
No. Proceedings and causes of action relating to the undertaking could continue and be enforced by or against the Industrial Finance Corporation of India Limited.
Did guarantees connected with loans or lease finance remain valid?
Yes. Any guarantee given for or in favour of the Corporation regarding a loan, lease finance or other assistance continued to operate in relation to the Company.
