Shri Mukul Srivastava vs Indian Institute Of Banking & … on 9 February, 2010

                         Central Information Commission
             Complaint No.CIC/SM/C/2009/00610-SM dated 24.02.2009
                Right to Information Act-2005-Under Section (18)

                                                       Dated: 09 February 2010

Name of the Complainant           :   Shri Mukul Srivastava,
                                      H. No. 233, 1st Floor, SBI Colony,
                                      Paschim Vihar, New Delhi.

Name of the Public Authority      :   Public Information Officer,
                                      Indian Institute of Banking & Finance,
                                      The Arcade, World Trade Centre,
                                      2nd Floor, Tower - 4, Cuffe Parade,
                                      Mumbai - 400 005.


        The Complainant was present in person.

        On behalf of the Respondent, Shri Kishan Rawat, Advocate, was

present.

This case was posted for hearing on 17 November 2009.

2. In this case, the Complainant had approached the Indian Institute of

Banking and Finance (Institute) on February 24, 2009 seeking a number of

information in respect of the JAIIB Examinations held on 18 November 2007

including the complete scores/marks obtained by the candidates for both

the exams with their respective answer sheets. On behalf of the Institute,

in a reply dated 19 March 2009, he was informed that it was not a Public

Authority under the Right to Information (RTI) Act and, hence, could not

provide him with any of information. The Complainant has, thus, come

before the Central Information Commission seeking direction to the Institute

for providing him with the desired information.

3. We heard this case in several sittings. The main issue for decision in

this case is whether the Institute is a Public Authority within the meaning of

CIC/SM/C/2009/00610-SM
Section 2(h) of the Right to Information (RTI) Act. The Section 2(h) reads as

under:-

“public authority means by authority or body or institution of self-
government established or constituted –

(a) by or under the Constitution;

(b) by any other law made by Parliament;

(c) by any other law made by State Legislature;

(d) by notification issued or order made by the appropriate
Government

and includes any –

(i) body owned, controlled or substantially financed;

(ii) non-Government organization substantially financed,

directly or indirectly by funds provided by the appropriate
Government”.

4. Obviously, this Institute is a Non-Governmental Organisation. A Non

Governmental Organisation becomes a Public Authority only when it is

substantially financed directly or indirectly by funds provided by the

appropriate Government. From various records and documents furnished to

us by both the Complainant and the Institute, such as, the Memorandum and

Articles of Association of the Institute, its annual reports for the previous

three years and the contributions made by various Banks and financial

institutions for availing of various services from the Institute, the following

facts emerge:-

(i) This Institute was first incorporated as the Indian Institute of
Bankers on 4 April 1928 under the Indian Companies Act, 1913;

CIC/SM/C/2009/00610-SM

(ii) the initial subscribers to this Institute included, among others,
the Bank of India and the Imperial Bank of India;

(iii) the present Governing Council of this Institute consists of a
President, two Vice-Presidents and 18 members. All these, the
President, the Vice-Presidents and majority of members of the
Governing Council are from the Public Sector Banks;

(iv) one the major activities of the Institute is to conduct
examinations for Banking Personnel, such as, JAIIB and CAIIB.
Since passing these examinations is a pre-condition for career
promotion in Public Sector Banks, the majority of the candidates
who take these examinations are from these Banks and far out-
number the candidates who appear in all other examinations
conducted by it;

(v) the Institute charges fees from all those who take the above
examinations conducted by it as well as for other services it
provides;

(vi) the Member Banks and financial institutions give an annual
subscription to the Institute;

(vii) though the subscription from the Member Banks including the
Public Sector Banks is declining over the years, the fees collected
against various services including the above examinations is on
the increase and the bulk of the corpus of the Institute consists
of the examination fees and the subscriptions paid by the Member
institutions;

(viii) consistently over the years, its Governing Council and its
Executive Committee, that is, two most important decision
making bodies, have consisted of the CMDs and other senior
functionaries of the Public Sector Banks;

CIC/SM/C/2009/00610-SM

(ix) over the years, income of the Institute consists more from the
Examination fees paid by the candidates appearing in the various
examinations conducted by it and since the employees and
officers of the Public Sector Banks, as a matter of service
requirement, have to take these examinations, indirectly the
finance of the Institute consists of direct subscription by these
Banks as well as the indirect support extended through
compelling their employees and officers to take up the Institute’s
examinations.

5. Thus, the scenario that emerges is that not only the policy making

and executive bodies of this Institute are substantially manned by the senior

executives of the Public Sector Banks and the bulk of its finances also come

directly or indirectly from those Banks. The services of the Institute are

largely subscribed to and enjoyed by the Public Sector Banks and their

employees. There is a very close relationship between the Public Sector

Banks and this Institute, almost verging on mutual dependence. The

defining characteristics of a Non-Governmental Organisation as a Public

Authority, as per Section 2(h)(ii), is that it should be substantially financed

directly or indirectly by funds provided by the appropriate government. This

Institute, is a Non Governmental Organisation being substantially financed

by the Public Sector Banks directly and indirectly is nothing but a Public

Authority. We, therefore, hold that this Institute is a Public Authority and

the provisions of the Right to Information (RTI) Act shall apply to it

completely.

6. Besides, as far as its activities are concerned, this Institute conducts

various examinations for the officers and the employees of the Banks,

CIC/SM/C/2009/00610-SM
predominantly from the Public Sector Banks. The services rendered by it

through holding of examinations and setting standards for the Banking sector

is a public service even if the participants have to pay a fee for taking the

examinations. There is a little difference this Institute and other such

bodies as the Central Board of Secondary Education (CBSE), Indian Institute

of Chartered Accounts, Institute of Cost and Work Accountants of India and

others which conduct various examinations in their respective fields with a

view to setting benchmarks and standards and giving marks/scores and

certificates on the basis of which the society evaluate the merits of those

individuals. Thus, this Institute not only fulfils the condition of substantial

financing as stipulated in Section 2(h)(ii), it also performs public service

covering a vast section of population. Therefore, there is no doubt that this

Institute is a Public Authority within the meaning of Section 2(h) of the Right

to Information (RTI) Act and subjected to that the provisions of the Right to

Information Act shall extend to it.

7. In view of the above, we direct that the Institute must appoint a

Central Public Information Officer (CPIO) within 30 working days from the

receipt of this order and provide the desired information to the Complainant

within the same period. A compliance of our order be sent to us

immediately thereafter.

8. The Commission ordered accordingly.

9. Copies of this order be given free of cost to the parties.

(Satyananda Mishra)
Information Commissioner

CIC/SM/C/2009/00610-SM
Authenticated true copy. Additional copies of orders shall be supplied
against application and payment of the charges prescribed under the Act to the
CPIO of this Commission.

(Vijay Bhalla)
Assistant Registrar

CIC/SM/C/2009/00610-SM