Central Information Commission
Mrharinder Dhingra vs Reserve Bank Of India on 23 July, 2015
Central Information Commission
Room No.307, II Floor, B Wing, August Kranti Bhawan, Bhikaji Cama Place, New
Delhi110066
websitecic.gov.in
Appeal: No. CIC/MP/A/2014/002178
Appellant : Shri Harinder Dhingra,
Gurgaon.
Public Authority: Reserve Bank of India, Mumbai
Date of Hearing : 02nd July, 2015.
Date of Decision : 23rd July, 2015.
Present :
Appellant :
Present in person
Respondent : Shri B.S.
Bohra, Asstt. Legal Adviser & Shri
M.K.
Poddar, AGM through VC.
ORDER
1. The appellant, Shri Harinder Dhingra, submitted RTI application dated 11.06.2014 before the Central Public Information Officer (CPIO), Reserve Bank of India, New Delhi seeking information on three points - copy of memo about audits of the CDR system conducted/undertaken by RBI during the last three financial years i.e. 1.4.2011 to 31.3.2014; records as stipulated u/s 2(f) of the RTI Act since the inception of CDR system, the number of audits of the CDR System that have been conducted by the RBI; available information about various audits that CDR system is subjected to in every financial year.
2. The CPIO vide letter dated 21.07.2014 informed the appellant that RBI had not prescribed any audit for CDR system and CDR Standing Forum is empowered to lay down policies and guidelines for CDR Mechanism Updated instructions on Corporate Debt Restructuring are contained in annexure 4 of Master Circular No. DBOD BP.BC.9/21.04.048/2014-15 dated 1.7.2014 on 'Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances'. In terms of para 5.3.1 of the annex ibid CDR is a non-statutory mechanism which is a CIC/MP/A/2014/002178 1 voluntary system based on Debtor-Creditor Agreement (DCA) and Inter-Creditor Agreement (ICA). The DCA and ICA shall provide the legal basis to the CDR mechanism. Further, in terms of para 2.1 read with para 2.3 of the said annexure, CDR Standing Forum will be a self-empowered body, which will lay down policies and guidelines, and monitor the progress of corporate debt restructuring. The RBI would not be a member of the CDR Standing Forum and Core Group. Its role will be confined to providing broad guidelines. Dissatisfied with the reply of the CPIO the appellant filed an appeal on 04.08.2014 before the first appellate authority (FAA) on the grounds that the CPIO had replied in response to his queries by quoting the RBI's circular, instead of seeking assistance from CDR Standing Forum u/s 5(4) and 5(5) of the RTI Act or should have transferred to the RTI application u/s 6(3) of the RTI Act. The FAA vide order dated 29.09.2014 concurred with the reply of the CPIO.
3. Thereafter the appellant filed the present appeal before Commission.
4. The matter was heard by the Commission. The appellant stated that the CDR Forum qualifies to be public authority and RBI ought to have transferred the RTI application to that body under Section 6(3) of the RTI Act.
4.1 The respondents stated that the CDR Cell was established in view of the need for evolving an appropriate mechanism for corporate debt restructuring in the country. As per the framework CDR is a non-statutory mechanism which is a voluntary system based on Debtor Creditor Agreement (DCA) and Inter-Creditor Agreement (ICA). The Inter-Creditor Agreement (ICA) provides the legal basis to the CDR mechanism. The role of the RBI with regard to CDR is limited to providing broad guidelines for CDR mechanism. The CDR Standing Forum is the representative general body of all financial institutions and banks participating in CDR system. CDR Standing Forum is a self empowered body which lays down policies and guidelines and monitors the progress of corporate debt restructuring and is guided by its own procedures. The Standing Forum is not established by or under the Constitution or any law made by Parliament or State Legislature or by notification issued or order made by the appropriate Government. The Standing Forum is neither substantially funded by any government nor it is under the control of the Government. Therefore, the Standing Committee does not fall within the definition of a public authority as defined in section 2(h) of the RTI Act. Since the CDR Cell is not CIC/MP/A/2014/002178 2 a public authority as defined in section 2(h) of the RTI Act, hence the RBI did not transfer the application for information submitted by the applicant to CDR Cell u/s 6(3) of the RTI Act.
4.2 As regards auditing of activities of CDR, the RBI neither audits the activities of CDR Cell nor has prescribed any audit for activities of CDR Cell. However, the accounts restructured by banks under CDR Mechanism are subjected to regular audit as also RBI inspection on a sample basis during the audit and inspection of banks.
5. Having considered the above submissions of the respondents, the Commission observes that the respondents elaborately explained the composition of CDR Standing Forum, its activities, audit etc. However, keeping the provisions of Section 2(f) of the RTI Act which stipulates that "...the information relating to any private body which can be accessed by a public authority under any other law for the time being in force", the matter is remitted to the CPIO to consider whether the information as sought for by the appellant can be accessed from Standing Committee of CDR Forum and if so, provide information to the appellant after obtaining it from them, keeping in view the provisions of the RTI Act. The CPIO will comply with the directions of the Commission within four weeks of receipt of this order. The appeal is disposed of.
(Manjula Prasher) Information Commissioner Authenticated true copy:
(T.K. Mohapatra) Dy. Secretary & Dy. Registrar Ph. No. 011-26105027 CIC/MP/A/2014/002178 3 Address of the parties:
Shri Harinder Dhingra, D4A, D.L.F. Phase-1, Gurgaon-122002.
The Central Public Information Officer, Reserve Bank of India, Department of Banking Operations & Development, Central Office, 12th Floor, Central Office Bldg., Shahid Bhagat Singh Marg, Mumbai-400001.
The Executive Director/FAA, Reserve Bank of India, Department of Banking Operations & Development, Central Office, 12th Floor, Central Office Bldg., Shahid Bhagat Singh Marg, Mumbai-400001.CIC/MP/A/2014/002178 4