3. Transfer to, and vesting in, the Central Government of certain undertakings of the Society,
trusts and bodies.—On the appointed day, so much of the undertakings of the Society, trust and body as
form part of, or are relatable to Auroville, and the right, title and interest of the Society, trust and body, in
relation to such undertakings, shall, by virtue of this Act, stand transferred to, and vest in, the Central
Government.
4. General effect of vesting.—(1) The undertakings vested under section 3 shall be deemed to
include all the assets, rights, leaseholds, powers, authorities and privileges, and all property (movable and
immovable), including lands, buildings, works, workshops, projects, stores, instruments, machinery,
automobiles and other vehicles, cash balances, funds, including reserve funds, investments and book
debts of the Society, trust or body as form part of, or are relatable to, Auroville and all other rights and
interests arising out of such properties as were immediately before the appointed day in the ownership,
possession, power or control of the Society, trust or body, whether within or without India, and all
books of account, registers, maps, plans and all other documents of whatever nature relating thereto.
(2) All properties and assets as aforesaid which have vested in the Central Government under
section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage,
charge, lien and all other incumbrances affecting them or of any attachment, injunction, decree or order of
any court or other authority restricting the use of such properties or assets in any manner or appointing
any receiver in respect of the whole or any part of such properties or assets shall be deemed to have been
withdrawn.
(3) Any licence or other instrument granted to the Society, trust or body in relation to any undertaking
which has vested in the Central Government under section 3 at any time before the appointed day and in
force immediately before the appointed day, shall continue to be in force on and after such day in
accordance with its tenor in relation to and for the purposes of such undertaking or where the undertaking
is directed under section 6 to vest in the Foundation, the Foundation shall be deemed to be substituted in
such licence or other instrument as if such licence or other instrument had been granted to the Foundation
and the Foundation shall hold it for the remainder of the period for which the Society, trust or body would
have held it under the terms thereof.
(4) If, on the appointed day, any suit, appeal or other proceeding, of whatever nature, in relation to
any property or asset which has vested in the Central Government under section 3, instituted or preferred
by or against the Society, trust or body is pending, the same shall not abate, be discontinued or be, in any
way, prejudicially affected by reason of the transfer of the undertakings of the Society, trust or body or of
anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or
enforced by or against the Central Government, or where the undertakings of the Society, trust or body
are directed under section 6 to vest in the Foundation, by or against the Foundation.
5. Central Government or Foundation to be liable for certain prior liabilities.—Every liability in
relation to any undertaking in respect of any period prior to the appointed day shall be enforceable against
the Central Government and not against the Society, trust or body, or where the said undertakings are
directed, under section 6, to vest in the Foundation, against the Foundation.
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6. Power of Central Government to direct vesting of the undertakings in the
Foundation.—(1) Notwithstanding anything contained in sections 3 and 4, the Central Government shall,
as soon as may be after the appointed day, direct, by notification, that the undertakings and the right, title
and interest of the Society, trust or body in relation to such undertakings which had vested in the Central
Government under section 3, shall, instead of continuing to vest in the Central Government, vest in the
Foundation either on the date of publication of the notification or on such earlier or later date as may be
specified in the notification.
(2) Where the right, title and interest of the Society, trust or body in relation to the undertakings vest,
under sub-section (1), in the Foundation, the Foundation shall, on and from the date of such vesting, be
deemed to have become the owner in relation to such undertakings and the rights and liabilities of the
Central Government in relation to such undertakings shall, on and from the date of such vesting, be
deemed to have become, the rights and liabilities, respectively, of the Foundation.
7. Management, etc., of the undertakings.—(1) The general superintendence, direction, control and
management of the affairs of the undertakings, the right, title and interest in relation to which have vested
in the Central Government under section 3, shall,—
(a) where a direction has been made by the Central Government under sub-section (1) of
section 6, vest in the Foundation; or
(b) where no such direction has been made by the Central Government, vest in a Custodian
appointed by the Central Government under sub-section (2),
and, thereupon, the Foundation, or the Custodian so appointed, as the case may be, shall be entitled to
exercise all such powers and do all such things as the Society, trust or body, as the case may be, is
authorised to exercise and do in relation to its undertakings.
(2) The Central Government may appoint any person as the Custodian of the undertakings in relation
to which no direction has been made by it under sub-section (1) of section 6.
(3) The Custodian so appointed shall receive such remuneration as the Central Government may fix
and shall hold office during the pleasure of the Central Government.
8. Duties of persons in charge of management by undertakings to deliver all assets.—(1) On the
vesting of the management of the undertakings in the Foundation or on the appointment of a Custodian
under section 7, all persons in charge of the management of the undertakings immediately before such
vesting or appointment shall be bound to deliver to the Foundation or Custodian, as the case may be, all
assets, books of account, registers and other documents in their custody relating to the undertakings.
(2) The Central Government may issue such directions as it may deem desirable in the circumstances
of the case to the Custodian as to the powers and duties of the Custodian and such Custodian may also, if
it is considered necessary so to do, apply to the Central Government at any time for instructions as to the
manner in which the management of the undertakings shall be conducted or in relation to any other matter
arising in the course of such management.
(3) Any person, who on the appointed day, has in his possession or under his control, any books,
documents or other papers relating to the undertakings shall be liable to account for the said books,
documents or other papers to the Central Government or the Foundation, as the case may be, and shall
deliver them up to the Central Government or the Foundation or to such person or body of persons as the
Central Government or the Foundation may specify in this behalf.
(4) The Central Government or the Foundation may take or cause to be taken, all necessary steps for
securing possession of all undertakings which have vested in the Central Government or the Foundation
under this Act.
(5) The Society, trust or body shall, within such period as the Central Government may allow in this
behalf, furnish to that Government a complete inventory of all its properties and assets, as on the
appointed day pertaining to the undertakings and, for this purpose, the Central Government or the
Foundation shall afford to the Society, trust or body all reasonable facilities.
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9. Certain powers of the Central Government or the Foundation.—The Central Government or
the Foundation shall be entitled to receive up to the specified date, to the exclusion of all other persons,
any money due to the Society, trust or body in relation to its undertakings which have vested in the
Central Government or the Foundation, as the case may be, and realised after the appointed day,
notwithstanding that the realisation pertains to a period prior to the appointed day.