C Arul Amuthan vs Indian Overseas Bank on 4 April, 2019

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Central Information Commission

C Arul Amuthan vs Indian Overseas Bank on 4 April, 2019

1. The issues under consideration arising out of the second appeal dated 12.10.2017 include non-receipt of the following information raised by the appellant through his RTI application dated 14.06.2017 and first appeal dated 31.07.2017:-

(i) 1) Public funds handling by IOB, and take necessary action against the NPA's for recovery similarly IOB will take necessary action against their Branches for violations of procedures and not following their credit sanction advice terms and conditions kindly provide information whether IOB had taken any action against IOB Ramalinga Nager Branch, Coimbatore 641011 for violation in procedures, terms and conditions for loan sanctioned and operation of PG Dyes & chem account

(ii) The Principal Borrower of Mr.V.Sundararajan of PG Dyes & Chem , CIBIL report details given below (about Mr.V.Sundararajan IOB taken CIBIL report ,) • Presence of a tradeline with worst status in the past 6 month • Low proportion of Satisfactory trade • No presence of revolving trade line Kindly provide information based on the above CIBIL report , IOB Ramalinga Nager Branch , Coimbatore 641011 volunteered to take over PG Dyes & Chem account from Catholic Syrian Bank. Tirupur.

(iii) Kindly provide specific motivation information about, IOB Ramalinga Nager Branch , Coimbatore 641011 Volunteered to took over PG Dyes & Chem account from Catholic Syrian Bank. Tirupur.

(iv) Kindly provide information before takeover and sanction of credit sanction advice to PG Dyes & Chem, whether IOB given mandatory advice to close (all) current accounts in catholic Syrian Bank and other Banks operation in the name of PG Dyes & Chem.

(v) Kindly provide information after given credit sanction advice to PG Dyes & Chem, whether JOB had given permission to PG Dyes & Chem, Open & operate current accounts in other banks or principal borrower of PG Dyes & Chem informed to JOB Ramalinga Nager Branch, Coimbatore 641011 about operation of Current account in other Bank.

(vi) IOB Ramalinga Nager Branch, Coimbatore 641011 sanctioned the CC loan to PG Dyes & Chem , kindly provide information whether Credit sanction advice terms and conditions were properly followed by borrower and IOB.

(vii) IOB, Ramalinga Nager Branch , Coimbatore 641011 had given credit sanction advice to PG Dyes & Chem with terms and conditions. Kindly provide information whether IOB, Ramalinga Nager Branch officials had given undue advantage to the Principal borrower Mr.V.Sundararajan of PG Dyes & Chem to violate and not to follow the credit sanction advice terms and conditions including inspection and routine bank operations and procedures.

(viii) IOB, Ramalinga Nager Branch, Coimbatore 641011 covered the stocks insurance through Universal Sampo General Insurance Co Ltd. kindly provide information stocks Insurance value properly covered for the entire CC Limit (15 Lacs) from date of sanction of CC loan till SARFAESI Act recovery action of the PG Dyes & Chem.

(ix) IOB, Ramalinga Nager Branch, Coimbatore 641011 covered the insurance of PG Dyes & Chem stocks. kindly provide information Insurance covered including the margin (stocks) shown in the stock statement.

(x) IOB, Ramalinga Nager Branch, Coimbatore 641011 issued Final recall Notice on 26.07.2012 against PG Dyes & Chem kindly provide information whether Final recall Notice severed to PG Dyes & Chem credit sanction advice address and all partners and Guarantors addresses.

(xi) IOB, Ramalinga Nager Branch, Coimbatore 641011 issued SARFAESI Act 13 (2) notices on 10.08.2012 against PG Dyes & Chem kindly provide information whether SARFAESI Act 13 (2) severed to PG Dyes & Chem credit sanction advice address and all partners and Guarantors addresses.

(xii) IOB, Ramalinga Nager Branch, Coimbatore 641011 issued SARFAESI Act 13 (2) notices on 10.08.2012, against PG Dyes & Chem. Based on the SARFAESI Act 13 (2) notice IOB Ramalinga Nager Branch, Coimbatore 641011 taken possession of the securities and given paper advertisement for E-AUCTION CUM SALE NOTICE UNDER SARFAESI ACT, 2002 under SARFAESI Act.

Kindly provide information about the exact insured, Hypothecated stocks including margin stocks taken possession by IOB, Ramalinga Nager Branch , Coimbatore 641011 and exact value stock insurance covered during period.

(xiii) IOB , Ramalinga Nager Branch, Coimbatore 641011 issued SARFAESI Act 13 (2) notices on 10.08.2012 , against PG Dyes & Chem. Based on the SARFAESI Act 13 (2) notice JOB Ramalinga Nager Branch, Coimbatore 641011 taken possession of the securities(including stocks) and given paper advertisement for E-AUCTION CUM SALE NOTICE UNDER SARFAESI ACT, 2002 under SARFAESI Act. Insured and hypothecated stocks taken possession Kindly provide information whether JOB liquidated entire stocks and exact amount adjusted against the PG Dyes & Chem Outstanding amount.

(xiv) IOB , Ramalinga Nager Branch , Coimbatore 641011 during PG Dyes & Chem , NPA recovery process under SARFAESI Act 13(2) and 13(4) & paper advertisement for E-AUCTION CUM SALE NOTICE UNDER SARFAESI ACT, 2002..kindly provide me information whether entire insured , hypothecated stocks including margin taken possession or any insurance claim done by IOB for shortage of Insured, hypothecated stocks.

(xv) Kindly provide me information, any shortage , during possession of insured , hypothecated stocks including margin stocks during SARFAESI Act recovery process from PG Dyes & Chem by IOB , Ramalinga Nager Branch, Coimbatore 641011.

(xvi) Based on the stock statements and reports submitted by Mr.V.Sundararajan, IOB allowed 4 him to operate the PG Dyes & Chem CC account ( DP limit).kindly provide information whether. IOB , Ramalinga Nager Branch , Coimbatore 641011, properly inspected the actual stocks and properly verified the actual sales , purchase and actual bank financial statements and reports as per credit sanction terms and conditions during financial year 2009-10 before release of (CC limit) DP limit for account operations. (xvii) IOB, Ramalinga Nager Branch, Coimbatore 641011 had given credit sanction advice to PG Dyes & Chem with terms and conditions. As per credit sanction advice terms and conditions insurance cover by IOB through agency for Rs 35,00,000 (thirty five lakhs) for the period of 2009 -- 10 and 2010- 11 but suddenly reduced to RS 12,00,000 (twelve lakhs) for the period of 2011 -- 12 and subsequent years . kindly provide information to the following points

a) Kindly provide information any change in CC limit during the change of insurance coverage period 2010-11 and 2011-12 of PG Dyes & chem.

b) Kindly provide information any change in DP limit during the change of insurance coverage period 2010-11 and 2011-12 of PG Dyes & chem.

c) Kindly provide information any change in Stocks positions and godown during the change of insurance coverage period 2010-11 and 2011-12 of PG Dyes & chem.

d) Kindly provide information all the stocks statements (godown) received on time by IOB during the change of insurance coverage period 2010-11, 2011-12 and 2012-13 of PG Dyes & chem.

(xviii) Kindly provide information IOB,Ramalinga Nager Branch, Coimbatore 641011 properly / analysis the stocks statements (Godown) before release of every month DP (CC) Limit and interests charged ( normal and OD on DP limit ) as per credit sanction advice terms and conditions (xix) IOB, Ramalinga Nager Branch , Coimbatore 641011 issued SARFAESI Act 13(2) notice on 10.08.12 against PG Dyes & Chem and further initiated taking possession of securities (including stocks and collaterals ) meanwhile IOB , Ramalinga Nager Branch , Coimbatore 641011 renewed the insurance policy for the stocks and collaterals for the period 29.10.12 to 28.10.13 and premium deducted from PG Dyes & Chem, Non Performing Account (NPA) on 10.10.2012. kindly provide me the following information

a) Exact date of insurance and IOB officials inspected the NPA stocks in Godown before renewal

b) Exact details of the materials .& quantity inspected and covered insurance by the insurance inspection officials and IOB Officials at PG Dyes & Chem Godown

c) Exact value of the stocks including margin stocks available on the renewal day at PG Dyes & Chem Godown

d) Exact address of the PG Dyes & Chem insurance covered Godown during the period 29.10.12 to 28.10.13 and previous years.

e) Exact value of the stock insurance covered for PG Dyes & chem by IOB during the period 29.10.12 to 28.10.13 and previous years.

(xx) PG Dyes & Chem Principal borrower Mr.V.Sundararajan net worth increased from 86.14 lakhs to 643.37 lakhs with in one (year) renewal period ( refer your credit sanction advice period 2009 and late renewal 2010 on 29.1.2011). kindly provide information whether IOB Ramalinga Nagar Branch , Coimbatore 641011 had taken any action against his extraordinary net worth during recovery process of the PG Dyes & Chem loan account before sale or assignment of account to ARCIL (xxi) Principal borrower Mr.V.Sundararajan of PG Dyes & Chem net worth suddenly " increased approximately 746% within a year (renewal) kindly provide information whether IOB had updated your records after obtaining proper documents from Mr.V.Sundararajan of PG Dyes & Chem (xxii) Extraordinary (net worth) financial change of Mr. Mr.V.Sundararajan, Principal / borrower of PG Dyes & Chem should be informed to the all the Guarantors of PG Dyes & Chem as per TOB's Code of bank's commitment to customers,(BCSBI) , kindly provide copy of the financial change correspondences send by JOB , Ramalinga Nager Branch , Coimbatore 641011 to all Guarantors of PG Dyes & Chem before sale or assign to ARC. (xxiii) Kindly provide information any action taken by IOB , Ramalinga Nager Branch, Coimbatore 641011 for shortage of insured , Hypothecated stocks against Principal borrower or any insurance claim during SARFAESI Act recovery action of PG Dyes & Chem (xxiv) Kindly provide me as Per SARFAESI Act 2002, the exact date and copy of SARFAESI / Act notices severed to all partners and Guarantors of PG Dyes & Chem and PG Dyes & Chem company address before sale or assign the account to ARC ( ARCIL) (xxv) As Per SARFAESI Act 2002,Exact date and copy of sale or assignment to ARCIL / information send to all partners and Guarantors of PG Dyes & Chem under SARFAESI Act 2002, kindly provide the information it will enable us to negotiate with ARCIL for settlement or restructure or refinancing as per RBI regulations (kindly note till date ARCIL not send any communication to all Partners and Guarantors of PG Dyes & Chem and PG Dyes & Chem company address) (xxvi) I had written many complaints letters about procedure lapses, document verification / lapses and other lapses to various compliant authorities of IOB from Authorized officer, IOB Ramalinganager Branch to member(CMD) of the Grievances committee during year 2012 to 2016 Kindly provide Right information whether IOB really processing the complaints and Grievances procedures. If so kindly provide the copies of the replies send to my complaints.

2. Succinctly facts of the case are that the appellant filed an application dated 14.06.2017 under the Right to Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO), Indian Overseas Bank, Law Department Regional Office, Coimbatore, seeking the aforesaid information. The CPIO replied on 11.07.2017. Dissatisfied, the appellant filed first appeal dated 31.07.2017. The First Appellate Authority disposed of the first appeal vide order dated 24.08.2017. Aggrieved by this, the appellant has filed a second appeal dated 12.10.2017 before this Commission which is under consideration.

3. The appellant has filed the instant appeal dated 12.10.2017 inter alia on the grounds that the CPIO did not provide the requisite information and the CPIO is incorrect to state that an applicant may not ask questions about the nature and quality of actions of authorities.

4. The CPIO replied that the information sought by the appellant is voluminous in nature and culling out the same would disproportionately divert the resources of the public authority which is exempted under section 7 (9) of the RTI Act. Further, he stated that the information request is relating to the customers of the bank and the disclosure of the same is exempted under section 8 (1) (d) and (e) of RTI act. The FAA upheld the decision of the CPIO and held that the appellant has not sought 'information' as defined in section 2 (f) of RTI Act and has rather raised mere allegations against the bank.

5. The appellant and respondent represented by Mr. S.S. Venkatakrishnan, Regional Manager, Indian Overseas Bank, Coimbatore, attended the hearing through Video Conferencing.

5.1. The appellant submitted that he is a guarantor for the company PG Dyes & Chemicals and he has sought information relating to that company. Therefore, the respondent had wrongly denied him the information 5.2. The respondent submitted that the records sought by the appellant had been submitted to Asset Reconstruction Company and therefore they could not furnish the information. The respondent also referred to earlier decision of CIC dated 14.03.2017 in CIC/SH/A/2016/000797 in which the subject-matter of the instant appeal was covered.

6. The Commission after adverting to the facts and circumstances of the case, hearing the respondent and perusal of records, feels that the respondent has referred to CIC decisions on the same subject-matter. The instant appeal has multiple issues and due to paucity of time the parties could not conclude their submissions. In view of this, the matter is adjourned to 07.05.2019.

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

Sd/-

(Suresh Chandra) (सुरेश चं ा) Information Commissioner (सूचना आयु ) दनांक/Date: 04.04.2019

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