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[Cites 2, Cited by 2]

Central Information Commission

Mr.N D Dujarai vs Life Insurance Corporation Of India on 11 October, 2013

                   Central Information Commission
Room No.306, II Floor, B Wing, August Kranti Bhawan, Bhikaji Cama Place, New 
                                Delhi­110066
   Tele:011­26180512 & 011­26717355 Fax : 01126106145 website­cic.gov.in

                    Appeal: No. CIC/DS/A/2012/002760
 
Appellant /Complainant        :       Shri N.D. Dujari, Mumbai 
Public Authority              :     LIC of India, Mumbai
                              (Sh. Praveen Kutamble, CPIO, S. 
Ashwani Ghai,Secy.
                               Through videoconferencing)

Date of Hearing               :       11 October  2013 
Date of Decision              :       11 October   2013 
  
Facts:­ 

1.          Appellant submitted RTI application dated 25 June  2012 before the CPIO, LIC of India, Division Office­I, Jaipur  seeking information related to investment made by LIC in the  auction   of   ONGC   shares   (floor   price   Rs.290/­)   in   reference  with   the   CPIO's   letter   dated   12   June   2012   through   multiple  points. Matter was transferred to the RTI Department, Central  Office, Mumbai.

2. Vide  Order dated 24 July 2012, CPIO provided some of the  requisite   information   and   denied   others   on   the   ground   of  exemption   given   under   Section   8(1)(d)   and   ruled   that   other  information   sought   do   not   come   under   the   perview   of   Section  2(f) of the RTI Act,2005. 

3. Not satisfied by the PIO's reply, the Appellant preferred  First Appeal to the First Appellate Authority dated 23 August  2012.

4. Vide FAA Order dated 04 October 2012, the FAA upheld the  decision of the CPIO.

5. Being  aggrieved and not satisfied  by the above response  of the Public Authority, the Appellant preferred Second Appeal  before the Commission.

6. Matter was heard today. Both parties as above appeared at  Mumbai and were heard via videoconferencing. It was stated by  Appeal: No. CIC/DS/A/2012/002760              the   respondents   that   the   organization   follows   "collective  nature   of   decision   making"   in   respect   of   all   the   investment  decisions involving the Investment Committee and the Chairman  of   the   Corporation.   In   respect   of   the   decision   of   the  Corporation to invest in ONGC shares, the decision was based  on the Research Report on ONGC put up by the Risk Management  and   Research   Development   of   LIC   of   India   and   that   this  information has already been provided to the appellant. It was  further   submitted   by   the   respondents   that   this   process   is  proprietary in nature with commercial overtones and is unique  to   the   business   process   adopted   by   the   Corporation   the  disclosure of which would harm the commercial interests of the  Corporation. Appellant alleged that the LIC of India has acted  under   pressure     by     the   Finance   Ministry   in   the   matter   of  investment     in     ONGC   shares   which   allegation   was   stoutly  refuted by the respondents.

Decision notice

7. After   hearing   the   averments   of   both   parties,   Commission  notes   that   the   public   authority   has   been   quite   transparent  regarding   the   procedure   adopted   for   making   investments   of  public   funds   held   by   them.   Portfolio   management   is   a  commercial activity of the LIC of India which is governed by  IRDA   rules   within   which   the   investment   managers   of   the  Corporation   are   bound   to   operate   while     taking     investment  decisions   pertaining   to   public   funds.     In   our   view,   any  further disclosure in the matter of investment will amount to  encroaching on  matters of  commercial confidence  as per the  nondisclosure   provisions   of   Section     8(1)(d)     of   RTI     Act,  2005  and will not be in  larger public interest. Accordingly,  appeal is dismissed.

(Smt. Deepak Sandhu) Chief Information Commissioner Authenticated true copy:

(T. K. Mohapatra) Dy. Secretary & Dy. Registrar Tel. No. 011­26105027 Appeal: No. CIC/DS/A/2012/002760              Copy to:­
1. Shri N.D. Dujari  A­8, Neel Ashish 92, Jay Prakash Road, Andheri (West) Mumbai­400058
2. The CPIO Executive Director (RTI/New Projects) LIC of India, RTI Deptt.,  Central Office, 5th Floor,Yogakshema, PB No. 19953 J.B. Marg, Mumbai­400021
3. The Appellate Authority Managing Director  LIC of India, RTI Deptt.,  Central Office, 5th Floor,Yogakshema, PB No. 19953 J.B. Marg, Mumbai­400021    Appeal: No. CIC/DS/A/2012/002760