RBI’s action of making information out-of-bound under RTI is contempt of Court

“The Central Information Commission had given a ruling in nine different cases that RBI must disclose information,” says Shailesh Gandhi, former Central Information Commissioner and Right to Information (RTI). He was reacting on the shocking revelation published by Moneylife about the Reserve Bank of India keeping 26 areas out of bound of the RTI Act. ( Read: Shocking! On its own, RBI decides 26 areas to be out-of-bounds under the RTI Act ), The story reveals how RBI has declared denial of even that kind of information which comes under Section 4 of the RTI Act, and which every citizen has the right to its access.

The Supreme Court has upheld some of the crucial orders pertaining to RBI that were passed by Mr Gandhi, while serving as Central Information Commissioner. This includes a RBI investigation and audit report; inspection report and action taken report of a bank; reports of all co-operative banks that have gone into liquidation and action taken against their directors and others; file noting pertaining to banks that violated certain rules, scam of a mercantile bank and so on. However, as pointed out in our story, the RBI has put all this kind of information under Section 8 of the RTI Act loudly declaring that it cannot disseminate the information. ( Read: Critics of Shailesh Gandhi silenced

Mr Gandhi, says, “…these (his orders about RBI) were challenged in courts and the Supreme Court upheld all the orders of the CIC. The apex court stated, “We have, therefore, given our anxious consideration to the matter and came to the conclusion that the Central Information Commissioner has passed the impugned orders giving valid reasons and the said orders, therefore, need no interference by this Court”.

The apex court order mentions 11 orders passed by the Central Information Commission, out of which 10 were decided by Mr Gandhi.

Slamming the RBI for making mockery of the SC orders by defying them, Mr Gandhi says, “…the RBI is treating the orders of the Commission and the Supreme Court and the RTI Act made by Parliament in complete contempt. The RBI has pronounced its own list Right to Denial of Information law by its ‘Disclosure Policy’ , which is actually a non-disclosure Policy.”

Following is the list of orders given by Shailesh Gandhi, which were upheld by the Supreme Court on 16 December 2015. RBI is now defying these and pronounced its own non-disclosure policy.

I. Jayantilal Mistry: CIC/SM/A/2011/001487/SG/15434

a) Last RBI investigation and audit report carried out by Mr Santosh Kumar during 23/04/2010 to 06/05/2010 sent to Registrar of the co - operative of Gujarat, Gandhinagar on Makarpura Industrial Estate Co - Operative Bank Ltd. Reg No. 2808.

b) Last 20 years inspection report carried out with the name of inspector on the above named bank and action taken report.

c) Reports on all co-operative banks that have gone into liquidation and action taken against all directors and managers for recovery of public funds, powers utilized by RBI and analysis, and procedures adopted.

d) Names of remaining co - operative banks under your observations against irregularities and action taken reports.

e) Period required to take actions and implementations.

II. Venugopal CIC/SG/A/2011/002011/15404

a) Under which Grade The George Town Co-operative Bank, Chennai – 600079, has been categorized as on 31.12.2006.

III .Mittal CIC/SG/A/2011/002793/15661

a) Kindly provide copies of inspection reports of apex co-operative banks of various states/Mumbai District Co-operative Bank from 2005 till date.

IV. Kapoor CIC/SM/A/2011/001376/SG/15684

a) The PIO shall provide the complete information as per records on queries 2(b) The Commission also directs the Governor, RBI to display this information on its website, in fulfilment of its obligations under Section 4 (1) (b) (xvii) of the RTI Act. This direction is being given under the Commission’s powers under Section 19 (8) (a) (iii). This should be done before 31 December 2011 and updated each year.

b) Details of default in loans taken from public sector banks by industrialists. Out of above list of defaulters, top 100 defaulters, name of the businessman, address, firm name, principal amount, interest amount, date of default and date of availing loan.

c) Steps being taken for putting information sought in query 2(a) and list of defaulters on the website of the Respondent – public authority.

V. Subhash Chandra Agrawal

a) Complete and detailed information including related documents / correspondence / file noting etc of RBI on imposing fines on some banks for violating rules like also referred in enclosed news clipping.

b) Complete list of banks which were issued show-cause notices before fine was imposed as also referred in enclosed news clipping mentioning also default for which show-cause notice was issued to each of such banks.

c) List of banks out of those in query (2) above where fine was not imposed giving details like if their reply was satisfactory etc.

VI. Patil

a) Copies of complaints received by RBI against illegal working of the said bank, including violations of the Standing Orders of RBI as well as the provisions under Section 295 of the Companies Act, 1956.

b) Action initiated by RBI against the said bank, including all correspondence between RBI and the said bank officials.

c) Finding of the enquiry made by RBI, actions proposed and taken against the bank and its officials- official notings, decisions and final orders passed and issued.



VII. Shanmugam CIC/SG/A/2011/001966/16167

a) Before the Orissa High Court, RBI has filed an affidavit stating that the total mark to market losses on account of currency derivatives is to the tune of more than Rs. 32,000 crores. Please give bank wise breakup of the MTM losses

b) What is the latest figure available with RBI of the amount of losses suffered by Indian business houses? Please furnish the latest figures bank wise and customer wise.

c) Whether the issue of derivative losses to Indian Exporters was discussed In any of the meetings of Governor I Deputy Governor or senior official of the Reserve Bank of India? If so please furnish the minutes of the meeting where the said issue was discussed.

d) Any other Action Taken Reports by RBI in this regard.

VIII. Murlidharan CIC/SG/A/2011/002841/16732

a) What contraventions and violations were made by SCB in respect of non-compliance of RBI instructions on derivatives, for which RBI has imposed penalty of INR 10 lakhs on SCB in exercise of its powers vested under Section 47A(1)(b) of the Banking Regulations Act, 1949 and as stated in the RBI press release dated 26 April 2011 issued by Department of Communication, RBI.

b) Please provide us the copies/details of all the complaints filed with RBI against SCB, accusing SCB of mis-selling derivative products, failure to carry out due diligence in regard to suitability of products, not verifying the underlying/adequacy of underlying and eligible limits under past performance and various other non-compliance of RBI Instructions on derivatives. Also, please provide the above information in prescribed format.

c) Please provide us the copies of all the written replies/correspondences made by SCB with RBI and the recordings of all the oral submissions made by SCB to defend and explain the violations/contraventions made by SCB.

d) Please provide us the details/copies of the findings, recordings, enquiry reports, directive orders, file notings and/or any information on the investigations conducted by RBI against SCB in respect of non-compliance by SCB in respect of non-compliance of RBI instruction on derivatives. Also, please provide the above information in prescribed format.

IX. Ashwini Dixit CIC/SG/A/2011/003293/17640

a) Action taken by RBI against scams/economic inconsistencies of United Mercantile Cooperative Bank Ltd. (the “Bank”) along with the daily progress reports.