Central Information Commission
Mr. Manpreet Singh vs Small Industries Development Bank Of ... on 14 March, 2012
CENTRAL INFORMATION COMMISSION
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Decision No. CIC/SG/A/2012/000190/17684
Appeal No. CIC/SG/A/2012/000190
Relevant Facts emerging from the Appeal
Appellant : Mr. Manpreet Singh
R/o: F-12, Shahjahanpur Industrial Area,
Dist: Alwar, Rajasthan.
Respondent : Mr. U. Lal
Public Information Officer & General Manager Small Industries Development Bank of India, O/o The SIDBI Tower, 15, Ashoka Marg, Lucknow - 226001.
RTI application filed on : 16/06/2011 PIO replied : 25/08/2011 First appeal filed on : 07/09/2011 First Appellate Authority order : 24/08/2011 & 11/10/2011 Second Appeal received on : 17/01/2012 Reply after FAA's order : 20/10/2011 Information Sought:
1. On what date was the account of Creation Decors Private Limited declared to be a NPA and what was NPA amount on said date. Copy of documents be provided.
2. Did SIDBI issue any notice to Creation Decors Private Limited cancelling / recalling the term loan or proposing cancellation / recalling of term loan of Ps. 75 lakhs, before it issued issuance of loan recall notice dated 07.04.2000. If so copy of earlier notice be provided.
3. That copies of all valuation reports of assets of factory including land, building, plan and machinery and misc fixed assets etc since inception till date be provided to us.
4. Did SIDBI ever issue notice to Creation Decors Private Limited of intention to declare Creation Decors Private Limited as a willful defaulter under RBI willful default circular, and did they give 15 days time to reply to such notice, and if so copy of said notice be provided.
5. Did SIDBI ever give notice to Creation Decors Private Limited informing the company that it was covered under definition under category (a), (b), (c) or (d) of RBI circular of willful defaulter issued by RBI, and proposing to classify as willful defaulter under RBI Circular? If so copy of said notice be provided.
6. Did SIDBI ever grant personal hearing to Creation Decors Private Limited affording the company an opportunity of natural justice by allowing them to place their Defence on intention to declare company a willful defaulter, under RB! Circular for willful defaulters. If so details of same be provided.
7. Did SIDBI set up a committee headed by Managing Director as prescribed by RBI Circular for declaring willful defaulters for considering proposal for declaring Creation Decors a willful defaulter on RBI website. If so details of be provided.
8. Did SIDBI follow the all the statutory procedures prescribed by Reserve Bank of India under RBI Circulars on willful defaulters. If so how?
Page 1 of 59. By which letter and on what date did SIDBI write to Reserve Bank of India, for the first time for declaration of Creation Decors Private Limited as willful defaulter under RB! Circular for declaration of willful defaulters pursuant to which our company's name was hosted on RN website as willful defaulter. Copies of said letter with entire documentary evidence supplied to RBI be provided to us.
10. We have recently on 2 May 2011, found that CIBIL website hosts name of Creation Decors Private Limited as willful defaulter under RBI circulars, from quarter ended 31st March 2002 onwards till 31st December 2010. However website does not display records earlier then March 2002. Are there any records of willful defaulter of our company earlier than 31st March 2002.
a) When was our name put on RBI website as willful defaulter for first time at instance of SIDBI, since names are put on CIBIL. website on submission of willful defaulter report under RBI Willful default circular by concerned bank / FI.
b) What were the names of all the officers of SIOBI who had initiated steps for declaration of our company as willful defaulter, and who had prepared notesheets, made recommendations and given approvals for having our unit declared as willful defaulter on CIBIL website.
11. That SIDBI has got the name of our company's put on CIBIL website at least 36 times, for 36 consecutive quarters.
Copies of all the reports sent by 81DB!, in the format prescribed by RBJ for submission to CIBIL, for willful defaulters be provided to us.
12. Does SIDBI have any internal SJDBI guidelines / procedures for declaring willful defaulters and if so copy of same be provided to us.
13. SIDBI letter dated 30.8.2002 rejecting offer of OTS under RB1 OTS guidelines stated that OTS was rejected in view of some recent RBI instructions, but details of said RBI instruction were not provided.
a) What was the RBI circular number and date of the so called recent RBI instructions on basis of which OTS was rejected on 30.8.2002, and copy of said RBI instructions be provided to us.
b. Why was fact of our company having been declared as willful defaulter under RBI guidelines and name hosted on CIBIL website, at instance of SIDBI, not disclosed but deliberately concealed and suppressed in abovementioned OTS rejection letter dated 30.8.2002, when SIDBI had recently, at that time sent reports to CIBIL in prescribed RBI format for hosting our company's name of CIBIL blacklist of willful defaulters for period ended 30.6.2002.
c) Did SIDBI deliberately conceal and suppress information of SIDBI having declared us a willful defaulter under RBI willful default guidelines and our name hosted on CIBIL website since disclosure of following RBI Willful defaulter guidelines in their OTS rejection letter dated 30.8.2002, would have enabled us to seek legal redress for non compliance of procedure mandated by RB! in same Willful defaulter circulars at that time in August 2002, since SJDBI did not want us to come into knowledge and thus obtain legal redressal.
14. SIDBI letter dated 9.5.2003 rejecting offer of OTS under RBI, OTS guidelines stated that OTS was rejected as your company did not adhere to financial discipline of SIDBI and willfully violated terms and conditions of the loan agreement.
a) Why was fact of our company having been declared as willful defaulter under REI guidelines and name hosted on CIBIL website, at instance of SIDBI, not disclosed but deliberately concealed and suppressed in abovementioned OTS rejection letter dated 9.5.2003.
b) Did SIDBI deliberately conceal and suppress information of SIDBI having declared us willful defaulter under RBI willful defaulter guidelines and our name hosted on CIBIL website since disclosure of following RBI Willful defaulter guidelines cast onus on SIDBI to follow RBI, OTS guidelines also, in their letter dated 9.5.2003, when SIDBI had recently at that time sent reports to CIBIL in prescribed RBI format for hosting our company's name of CIBIL blacklist of willful defaulters for period ended 31.3.2003.
c) SIDBI deliberately and malafidely conceal and suppress information of SJDBI having declared us a willful defaulter under RB! willful deffiult guidelines and our name hosted on CIBIL website since disclosure of following RBI Willful defaulter guidelines in their OS rejection letter dated Page 2 of 5 9.5.2003, would have led us to get knowledge and enabled us to seek legal redress for non compliance of procedure mandated by RBI in willful defaulter circulars at that time, in May 2003.
15. SIDBI letter dated 20.2.2006 rejecting offer of OTS under RBI OTS guidelines stated that as per guidelines issued by RBI on OTS cases of willful default fraud and malfeasance are not covered under the scheme. Since your case falls under said category your company does not qualify for OTS.
a) Why was the letter vague and did not specifically state that our name was hosted on CIBIL website as willful defaulter at instance of SIDBI, from 2002 onwards till then.
b) Why was fact of our company having been declared as willful defaulter under RBI guidelines and name hosted on CIBIL website, at instance of SIDBI, deliberately concealed and suppressed in abovementioned OTS rejection letter dated 20.2.2006, when SIDSI had recently at that time sent reports to CIBIL in prescribed RBI format for hosting our company's name of CIBIL blacklist of willful defaulters for period ended 31.12.2005.
c) Did SIDBI deliberately conceal and suppress information of SIDBI having declared us willful defaulter under RBI willful defaulter guidelines and our name hosted on CIBIL website since disclosure of following RBI Willful defaulter guidelines cast onus on SIQBI to follow RBI OTS guidelines also, in their letter dated 20.2.2006.
d) Did SIDBI deliberately conceal and suppress information of SIDBI having declared us a willful defaulter under RBI willful default guidelines and our name hosted on CIBIL. website since disclosure of following RBI Willful defaulter guidelines in their OTS rejection letter dated 20.2.2006, would have led us to get knowledge of same and enabled us to seek legal redress for non compliance of procedure mandated by RBT inwillful default circulars at that time in 2006.
16. SIDBI letter dated 3.9.2010 rejecting offer of OTS under RBI OTS guidelines stated vaguely that OTS was rejected as your account has been classified as a case of suspected fraud and willful defaulter.
a) Why was the letter vague and did not specifically state that our name was hosted on CIBIL website as willful defaulter under RBI Circulars, at instance of SIDBI and since when.
b)Why was fact of our company having been declared as willful defaulter under RBI guidelines and name hosted on CIBIL website, at instance of SIDBI, malafidely and deliberately concealed and suppressed in abovementioned OTS rejection letter dated 3.9.2010, when SIDBI had recently at that time sent reports to CIBIL in prescribed RBI format for hosting our company's name of CIBIL blacklist of willful defaulters for period ended 30.6.2010.
c) Did SIDBI deliberately and malafidely conceal and suppress information of SIDBI having declared us willful defaulter under RBI willful defaulter guidelines and our name hosted on CIBIL website since disclosure of following RBI Willful defaulter guidelines cast onus on SIDBI to follow RBI OTS guidelines also, in their letter dated 3.9.2010.
d) Did SIDBI deliberately and malafidely conceal and suppress information of SIDBI having declared us a willful defaulter under RBI willful default guidelines and our name hosted on CIBIL website since disclosure of following RBI Willful defaulter guidelines in their OTS rejection letter dated 3.9.20 10, would have enabled us to seek legal redress for non compliance of procedure mandated by RBI in willful default circulars at that time in 2010.
17. Why was this information of our company being declared willful defaulter on CIBIL website under RBI Circulars, concealed by SIDBI in court proceedings before DRT and DRAT.
a) When SIDBI filed reply to Appeal filed in Hon'ble Debt Recovery Appellate Tribunal, New Delhi why did it not come before the Appellate Tribunal and make true disclosure of our company name having been put on RBI / CIBIL website as willful defaulter at instance of 51081, and why did it willfully and deliberately conceal this fact from the court.
b) In the reply filed by Sh. Masoodul Hasan, Deputy General Manager SIDBI New Delhi, in the court of Hon'ble Debt Recovery Appellate Tribunal New Delhi on 17.1.2011, in response to application for OTS under RBI guidelines by our company, why was it falsely stated under oath and why was court was misinformed and why was it misrepresented, that SIDBI has declared petitioner as willful defaulter not under RBI Guidelines but under as per SIDBI guidelines and false averment made under oath that "SIDBI guidelines do not require passing of a reasoned/speaking order and/or granting of personal hearing before classification of a borrower as willful defaulter and suspected fraud case".
Page 3 of 5c) Why did officer of SIDBI deliberately misrepresent and give false statement before the court under oath on 17.1.2011, that our company was not declared willful defaulter under RBI willful defaulter scheme, when SIDBI had recently at that time sent reports to CIBIL in prescribed RBI format for hosting our company's name of CIBIL blacklist of willful defaulters for period ended 31.12.2010.
d) Did SIDBI deliberately misinform he court and conceal and suppress information of SIDBI having declared us a willful defaulter under RBI willful default guidelines and our name hosted on RBI / CIBIL website, since disclosure of following RBI willful defaulter guidelines in their affidavit before Hon'ble DRAT would have enabled us to get OTS under RB! OTS guidelines, and SIDBI wanted to deprive us OTS under RBI scheme.
e) Did SIDBI deliberately conceal and suppress information of SIDBI having declared us a willful defaulter under RBI willful default guidelines and our name hosted on RBI/CIBIL website since disclosure of following RBI Willful defaulter guidelines in their OTS rejection letter dated 3.9.2010, would have enabled us to seek legal redress for non compliance of procedure mandated by RBI in willful default circulars at that time in 2010.
18. Did SIDBI Dy. General Manager in his reply and affidavit dated 17.1.2011 deliberately misrepresent, conceal and suppress the true fact of our company's name having been put on CIBIL website, as willful defaulter under RBI circulars, at instance of SIDBI, before the Hon'ble Debt Recovery Appellate Tribunal New Delhi, since he was aware that the blacklisting of our company as willful defaulter on CIBIL website was illegal, as RBI circulars of willful defaulters mandated giving of notice, 15 days time to file reply, and grant of personal hearing had been flouted by SIDBI and he wanted to conceal and hide this fact from the court.
Reply of the Public Information Officer (PIO):
Some of the reply to other queries are mentioned in the letter dated 25.08.2011.
1. Reply to Query no.6: CDPL promoters visited SIDBI office and had discussions with SIDBI officials in the matter. Copy of O/N dated 08/11/2002, 15/11/2002 and letter dated 18/04/2003 is enclosed as annexure-I. However, in terms of ARD circular H.O. No.2716/Rec. Policy. RBI data dated 31/01/2011 under which CDPL was declared as willful defaulter, nothing has been mentioned that SIDBI need to give any personal hearing to CDPL for declaring the company as a willful defaulter.
2. Reply to query no. 7: The committee was constituted in terms of ARD Circular H.O. No. 2716/Rec. policy RBI data dated 31/01/2001. As per the said circular, a committee should be constituted at Regional Office under the chairmanship of CGM for the purpose of identifying willful defaulter. Accordingly, a committee comprising CGM, Northern Regional Office, and New Delhi (NRO) as chairman was constituted. Copy of fax dated 26/03/2001, Office note dated 12/04/2011 & 13/04/2001 is enclosed. Copy of minutes of meeting have already been forwarded to CDPL vide order no.453 dated 25.08.2011.
3. Reply to query no.12: As directed by FAA, copies of circular are enclosed in respect of willful defaulter.
Grounds for the First Appeal:
Unsatisfactory reply was provided to the appellant by the PIO.
Order of the First Appellate Authority (FAA):
"PIO is directed to forward the attested photocopies of the remaining 176 pages to the appellant within 5 working days".
Grounds for the Second Appeal:
"unsatisfactory information was provided to the appellant by the PIO & FAA".Page 4 of 5
Relevant Facts emerging during Hearing:
The following were present Appellant: Mr. Manjinder Singh representing Mr. Manpreet Singh; Respondent: Mr. U. S. Lal, Public Information Officer & General Manager on video conference from NIC-Lucknow Studio;
The Appellant has been given inspection of various papers and has been provided photocopies of 2158 pages of documents for which he has paid the additional fees. The PIO will now check if there are any other documents relating to declaring M/s Creation Decors Private Limited as defaulter. The PIO will check if there are any other documents or papers with regard to this at any of the SIDBI's offices. If there are any other papers the PIO will inform the appellant about the number of pages before 10 April 2012 and the Appellant will make appropriate payment at Rs.2/- per page to obtain attested copies of these. If however no other papers are available the PIO will state this to the Appellant before 10 April 2012.
Decision:
The Appeal is allowed.
The PIO is directed follow the directions as given above. This decision is announced in open chamber. Notice of this decision be given free of cost to the parties. Any information in compliance with this Order will be provided free of cost as per Section 7(6) of RTI Act.
Shailesh Gandhi Information Commissioner 14 March 2012 (In any correspondence on this decision, mention the complete decision number.) (PG) Page 5 of 5