Samir Sardana vs Reserve Bank Of India on 2 February, 2021

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Central Information Commission

Samir Sardana vs Reserve Bank Of India on 2 February, 2021

1. The issues under consideration arising out of the second appeal dated 26.12.2018 include non-receipt of the following information raised by the appellant through his RTI application dated 28.09.2017 and first appeal dated 16.10.2018:-

i. List of defaulters.

Whether the RBI has shared with or communicated to any arm of the GOI, a list or lists of the 50 biggest bank defaulters, in the last 18 months?

1. If Yes, provide a certified of all of the said list or lists.

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2. If Yes, and if the information is available on any government portal - provide the reference of the same.

ii. NCLT Referral Whether the RBI has made any direction on referring defaulters to the NCLT, in the last 12 months?

3. If Yes, provide a certified of the said direction(s)

4. If Yes, and if the information is available on any government portal - provide the reference to the same.

iii. The AQR Process

5. Whether the RTI Applicant can inspect all the documents, notes, papers, minutes, extracts, reports, dossiers etc., related to the last AQR Process done/steered by the RBI

6. The RTI Applicant will inspect the documents, take photos of the same and identify the documents in respect of which certified copies are sought iv. IAC Whether the IAC has made any recommendations to the Insolvency and Bankruptcy Court, w.r.t. NPAs and other banking assets in the last 12 months

7. If Yes, provide a certified of the said recommendation(s)

8. If Yes, and if the information is available on any government portal - provide the reference to the same

9. Whether the RTI Applicant can inspect all the documents, notes, papers, minutes, extracts, reports, dossiers etc related to the IAC meetings (in the last 12 months)

10. The RTI Applicant will inspect the documents, take photos of the same and identify the documents in respect of which certified copies are sought.

v. CDR Page 2 of 12

11. Whether all the records related to the Final CDR packages approved and executed for all steel borrowers and its associated papers, notes and working papers are available with the RBl

12. If Yes, can the RTI Applicant inspect the same and photograph any record and take certified copies of any record.

vi. NPA/ Stressed Assets With respect to Corporate Borrowers in sectors excluding Infrastructure and Construction with o/s relevant dues of Rs 100 crores and above the following information is sought (Identified by sector)

13. Names of Borrowers (by separate legal entity) whose loans/facilities are declared NPAs

14. Names of Borrowers (by separate legal entity) whose Working capital loans/facilities are declared NPAs

15. Names of Borrowers (by separate legal entity) whose loans/facilities are declared Stressed

16. Names of Borrowers (by separate legal entity) whose Working capital loans/facilities are declared Stressed

17. Names of Borrowers with NPA/Stressed Asset Accounts, in the list as above, with operating working capital facilities, which are not NPAs/Stressed

18. Identifying in all of the above categories, the borrowers with cash losses and cash operating losses separately

19. Identifying in all of the above categories, the Gross Working Capital (GWC) of the borrowing entity and the financing of the GWC from Secured Bank Borrowings

-secured on assets, other than those provided as security, at the time of original project/working capital loan sanction Page 3 of 12

20. Identifying in all of the above categories, the Gross Working Capital (GWC) of the borrowing entity and the financing of the GWC from Unsecured Bank Borrowings

21. Identify in all of the above, the accounts where forensic audit has been done for project execution and/or operational activities (identifying either or both of these two types of audit)

22. Identify in all of the above, the accounts which had made incremental bank borrowings for working capital and other purposes (separately), from the date that the account was 1st declared as a NPA/Stressed Asset (id., est, the 1st date within the last 5 years) Whether the RBI has any estimate of the Borrowing made from Private Non Bank Sources by the aggregate class of NPAs and Stressed Assets?

23. If Yes, the amount of such borrowing by the aggregate class of NPAs and Stressed Assets

24. If Yes, the amount of such borrowing which is secured by assets of the borrower or 3rd party assets 25. Whether RBI is aware that the fact of a stressed/NPA asset is declared in the Quarterly Results and Annual Report of the Borrower

26. Whether RBI requires that the fact of a stressed/NPA asset is declared in the Quarterly Results and Annual Report of the Borrower.

27. Whether data and information w.r.t. loans and facilities sanctioned to borrowers within 3-6 months before the said account was declared stressed/NPA, is available with the RBI for all PSB as also the Private Sector Banks

28. Whether the RBI has carried out/funded any report, study, investigation, audit, analysis of the supply and value chain of the above mentioned Stressed and NPA assets - for any purpose whatsoever Page 4 of 12 With respect to Corporate Borrowers in the Residential and Commercial Construction Sector with o/s relevant dues of Rs 100 crores and above the following information is sought (identified by sector- id.est the 2 sectors)

29. Names of Borrowers (by separate legal entity) whose loans/facilities are declared NPAs

30. Names of Borrowers (by separate legal entity) whose Working capital loans/facilities are declared NPAs

31. Names of Borrowers (by separate legal entity) whose loans/facilities are declared Stressed

32. Names of Borrowers (by separate legal entity) whose Working capital loans/facilities are declared Stressed

33. Whether the RBI has any estimate of the Borrowing made from Private Non- Bank Sources by the aggregate class of NPAs and Stressed Assets?

34. If Yes, the amount of such borrowing by the aggregate class of NPAs and Stressed Assets

35. If Yes, the amount of such borrowing which is secured by assets of the borrower or 3rd party assets

36. Whether RBI is aware that the fact of a stressed/NPA asset is declared in the Quarterly Results and Annual Report of the Borrower

37. Whether RBl requires that the fact of a stressed/NPA asset is declared in the Quarterly Results and Annual Report of the Borrower

38. Whether data and information w.r.t. loans and facilities sanctioned to borrowers within

39. 3-6 months before the said account was declared stressed/N PA, is available with the RBI for all PSB as also the Private Sector Banks Page 5 of 12 With respect to Corporate Borrowers in the Infrastructure Sector, with o/s relevant dues of Rs 100 crores and above the following information is sought (Identified by sector)

40. Names of Borrowers (by separate legal entity) whose loans/facilities are declared NPAs

41. Names of Borrowers (by separate legal entity) whose Working capital loans/facilities are declared NPAs

42. Names of Borrowers (by separate legal entity) whose loans/facilities are declared Stressed

43. Names of Borrowers (by separate legal entity) whose Working capital loans/facilities are declared Stressed

44. Identify within the above, the borrowers and borrowings where the project lent to/for,or the operating cash flows are obviated/constrained/obstructed on account of Litigations

45. Regulations, Changes in laws and procedures, Arbitrations, Force Majeuere or other causes beyond the control of the borrower vii. Banking exposure to property/real estate

46. O/s Bank Loans on primary security of land and property for the manufacturing sector

47. O/s Bank Loans on primary security of land and property for the residential sector

48. O/s Bank Loans on primary security of land and property for the commercial construction sector 49. O/s Bank Loans on primary security of land and property for the infrastructure sector

50. O/s Bank Loans on primary security of land and property for the entertainment sector (theatres/parks/courses etc.) Page 6 of 12

51. O/s Bank Loans on primary security of land and property for unspecified or general purposes or general business purposes

52. O/s Bank Loans on primary security of land and property for trading in commodities

53. O/s Bank Loans on primary security of land and property for trading in gold

54. O/s Bank Loans on primary security of land and property for other purposes and sectors (specifying the Top 5 purposes and sectors)

55. Same data as above for BGs and LCs (identifying the portion of Transferable BGs and LCs)

56. With respect to each of the category as mentioned above, the following information is sought as under

57. Geography of the secured asset (by State)

58. Portion of the loan that is stressed or NPA viii. Banking exposure of Cooperative Banks

59. Aggregate Credit Exposure of Cooperative Banks, for different sectors, as at the last reporting date, of August, 2017

60. Aggregate Working Capital Exposure of Cooperative Banks, for different sectors, as at the last reporting date, of August, 2017

61. Aggregate NPA and Stressed assets Exposure of Cooperative Banks, for different sectors, as at the last reporting date, of August,2017 ix. Banking exposure to Micro Credit Institutions

62. O/s Bank Credit to Micro Credit institutions, by Geography of sanction and use, as at the last reporting date of August, 2017

63. O/s Unsecured Bank Credit to Micro Credit institutions, by Geography of sanction and use, as at the last reporting date of August, 2017 x. Banking exposure to NBFCs Page 7 of 12

64. Aggregate o/s Fund based exposure, by the Banking system, to Top 100 NBFCs (by exposure), as at the last reporting date, of August, 2017

65. Aggregate o/s Non Fund based limits utilized by Top 100 NBFCS (by exposure), the Banking system, as at the last reporting date, ofAugust,2017

66. Aggregate borrowing by the NBFCs in last 3 years at an effective cost lower than that of PNB (not o/s borrowing), as at the last reporting date of August, 2017

67. Aggregate o/s credit (secured and unsecured) by the NBFCs to the manufacturing sector, as at the last reporting date of August, 2017

68. Aggregate o/s credit by the NBFCs to the property sector, for property and construction, as at the last reporting date of August, 2017

69. Aggregate O/s credit by the NBFCs to the property sector, for non-construction businesses, as at the last reporting date of August, 2017

70. Aggregate o/s credit by the NBFCs for working capital, as at the last reporting date of August,2017 71. Aggregate o/s Non Fund Based credit by the NBFCs for working capital, as at the last reporting date of August, 2017

72. Aggregate o/s confirmation added by Indian Banks to Non-Fund Based Facilities issued by NBFCs or structured by NBFCs, as at the last reporting date of August, 2017

73. Aggregate o/s International FBGs issued by the Indian NBFCs, as at the last reporting date of August, 2017

74. Aggregate o/s International PBGs issued by the Indian NBFCs, as at the last reporting date of August, 2017

75. Aggregate o/s SBLCs issued by the Indian NBFCs, as at the last reporting date of August, 2017

2. Succinctly facts of the case are that the appellant filed an application dated 28.09.2017 under the Right to Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO), Reserve Bank of India, Mumbai, seeking aforesaid Page 8 of 12 information. The CPIO replied on 11.01.2018. Dissatisfied with the response to the CPIO, the appellant filed first appeal dated 16.10.2018. The First Appellate Authority (FAA) did not pass any order. Aggrieved by this, the appellant filed a second appeal dated 26.12.2018 before this Commission which is under consideration.

3. The appellant has filed the instant appeal dated 26.12.2018 inter alia on the grounds that the Information sought is in paramount public interest, as it exposes the criminality and fraud of the RBI; the RBI have displayed mala fide intent by rejecting 4 RTI Applications in the last 120 days , on the grounds of the Applications being in excess of 500 words. The appellant requested the Commission to direct the CPIO to provide the complete information and take necessary action as per Section 20 (1) of the RTI Act.

4. The CPIO vide letter dated 11.01.2018 replied that they had no information regarding RBIs communication to Government of India regarding any specific list of 50 defaulters; information regarding specific borrowers was exempted under section 8 (1) (d) of RTI Act; notes, correspondences done by RBI in Asset Quality Review was exempted under section 8 (1) (d) of RTI Act; documents, notes, papers, minutes, extracts, reports, dossiers, etc. related to the IAC meetings are exempt from disclosure under section 8 1 (d) of the Right to Information Act, 2005 and Section 45 E of the Reserve Bank of India Act, 1934.; information regarding corporate debt restructuring was not available with them; Sector wise aggregate credit exposure of Urban cooperative Banks (UCBs) was not available, however, latest sector wise details of the advances under priority sector of UCBs was available on their website; Sector wise NPAs of the UCBs was not available; RBI collects data from NBFCs-ND-SI and NBFCs-D on a quarterly basis, hence, the information available as at the end September 2017 was provided; Aggregate exposure to the Industry as a whole as on September 30, 2017 is Rs. 9,08,300 Crores; Aggregate exposure to Commercial Real Estate as on September 30, 2017 was Rs. 1,09,300 Crores; Aggregate exposure to Housing loan as on September 30, 2017 was Rs. 18,000 Crores, etc. The FAA did not pass any order.

5. The appellant and on behalf of the respondent Shri Shri Jeet Pathak, Law Officer, Shri Abhay Kumar, CPIO and Shri Sarvesh Narayan, Reserve Bank of India, Bandra, attended the hearing through video conference.

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5.1. The appellant inter alia submitted that the reply given by the respondent was not in consonance with the changed legal position and was not transparent in terms of the list of defaulters. The respondent had claimed most of the information to be not available with them. However, RBI being the regulator of banks was under an obligation to maintain the information sought and disclose the same in larger public interest.

5.2. The respondent while defending their case inter alia submitted that they had addressed all points raised in the RTI application. The respondent further argued that the information which was not published at any point of time keeping in view the adverse effects in the industry and on the competitive positions of the banks could not be disclosed to the appellant. Therefore, they had invoked the exemption clauses under section 8 (1) (a) and (d) of the RTI Act. Further, as on date of filing of RTI application they had denied the list of willful defaulters but the legal position having changed and in compliance of the Hon'ble Supreme Court's directions in that regard they had disclosed the list of willful defaulters in response to the RTI application filed later. However, the details of the borrowers were exempted under section 8 (1) (e) and (j) of the RTI Act and they reiterated their stand on that point.

6. The Commission after adverting to the facts and circumstances of the case, hearing both the parties and perusal of records, observes that the appellant has raised 75 points in his RTI application. Nonetheless, the respondent have addressed each and every point vide their reply dated 11.01.2018. Perusal of their reply reveals that they have duly invoked exemption clauses under section 8 (1) of the RTI Act wherever felt necessary by them. It may be noted that the respondent have provided web links in cases of data that may be accessed directly by him. The voluminous queries raised by the appellant under the apprehension of the respondent authority not being transparent is unfounded as the Annual Reports published by the RBI are comprehensive and contain most of the information sought. However, the information not available in material form or under their custody could not be created for the sake of responding to the RTI application. The Commission would also like to refer to the observations made by the Supreme Court in in Central Page 10 of 12 Board of Secondary Education and another v. Aditya Bandopadhyay and Others, (2011) 8 SCC497:

".67. Indiscriminate and impractical demands or directions under the RTI Act for disclosure of all and sundry information (unrelated to transparency and accountability in the functioning of public authorities and eradication of corruption) would be counter-productive as it will adversely affect the efficiency of the administration and result in the executive getting bogged down with the non- productive work of collecting and furnishing information. The Act should not be allowed to be misused or abused, to become a tool to obstruct the national development and integration, or to destroy the peace; tranquillity and harmony among its citizens. Nor should it be converted into a tool of oppression or intimidation of honest officials striving to do their duty. The nation does not want a scenario where 75% of the staff of public authorities spends 75% of their time in collecting and furnishing information to applicants instead of discharging their regular duties. The threat of penalties under the RTI Act and the pressure of the authorities under the RTI Act should not lead to employees of public authorities prioritising 'information furnishing', at the cost of their normal and regular duties.".

In view of this and the reply dated 11.01.2018, there appears to be no public interest in further prolonging the matter. Accordingly, the appeal is dismissed.

Copy of the decision be provided free of cost to the parties.

Sd/-

(Suresh Chandra) (सुसुरेश चं ा) ा Information Commissioner (सूसूचना आयु ) दनांक/Date: 02.02.2021 Authenticated true copy R. Sitarama Murthy (आर. सीताराम मूत ) Dy. Registrar (उप पंजीयक) 011-26181927(०११-२६१८१९२७) Page 11 of 12 Addresses of the parties:

CPIO :

1. RESEREVE BANK OF INDIA CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH MARG, MUMBAI - 400 001 THE F.A.A, RESEREVE BANK OF INDIA, CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH MARG, MUMBAI - 400 001 SAMIR SARDANA Page 12 of 12

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