The African Development Fund Act, 1982 was enacted to put into practice the Agreement on African Development Fund and other related matters. The Agreement Establishing The African Development Fund was concluded on November 29, 1972 for the purpose of aiding the African Development Bank in creating progressively more effectual contribution to the economic as well as social progression of the members of the Bank and to the support of assistance and enhanced international trade. It also gives fund at diminished rates for fundamentally significant reasons for such advancement. The resources of the African Development Fund shall include contributions by Bank and State participants, other resources contributed by such fund and funds acquired from other actions. Since India is a signatory to the Agreement Establishing The African Development Fund, the Parliament has enacted The African Development Fund Act of 1982. The Act is applicable to the entire Indian Territory including the State of Jammu and Kashmir.
According to the provisions of the Act, subsequent to the appropriation made by the Central Government by legislation connected with the matter, it shall be rewarded from the Consolidated Fund of India such funds which is required to be paid in specified intervals. Such payment shall include subscription to be paid by the Union, any sum to be paid by the Union and any charges to be paid by Union according to the provisions of the Agreement. The Central Government is empowered under the Act to generate and provide to the Fund in the specified manner with any non-interest manner or other liabilities as provided under the Agreement. For Indian Currency holding, the Act declares the Reserve Bank of India to be the depository of the African Development Fund. The legislation further confers standing, immunities, exclusion and rights in the fund and provides immunities, exclusion and rights on officers and employees.
Accordingly, the Articles of the Agreement enumerated in the Schedule shall be enforced in India in spite of any converse intention made under the Act. But the Agreement shall not be interpreted to enable the Fund to import commodities to India at no cost of customs duty without any precincts or ensuing sale. It shall also not bestow any exemption from any taxes or duties of the Fund that forms portion of the value of commodities that are put up for sale. It also does not let off the Fund from taxes or duties which is not more than service charges provided. The Government of India shall alter the Schedule in consonance with the provisions of the alterations made or assumed in the Agreement. In order to make effective compliance with the provisions of the Act, the enactment authorizes the Central Government to formulate rules.
Moreover, the Act provides that the notification publicised under the Act and the rules made as per the provisions of the Act shall be laid before the Lok Sabha and Rajya Sabha immediately after it is framed, when such House is in session for the entire term of thirty days that is inclusive of one session or in more than one session or where prior to the end of the session right away next to session of consecutive sessions, both Lok Sabha and Rajya Sabha concur in creating alteration in the notification or in the rule or both Houses have the same opinion that the notification is not to be publicized, such notification or rule shall be enforced only as approved upon by the Houses. But such invalidation or modification shall not prejudice to the activities performed under the Act. For the purpose of satisfying the objectives of the Fund or to achieve the functions assigned to it, the position, immunities, exclusion, and rights provided under the Act shall be harmonized to the Fund in each State territory and such participant state shall report to the Fund of the precise action which is carried out to serve the principle.