Central Information Commission Judgements

Mr.P I Ozha vs State Bank Of India on 10 September, 2010

Central Information Commission
Mr.P I Ozha vs State Bank Of India on 10 September, 2010
                 CENTRAL INFORMATION COMMISSION
                                       .....

F.No.CIC/SM/A/2009/001613­AT
Dated, the 10  September, 2010.

                                                             th


 Appellant        : Shri P.I. Oza 


 Respondent       : State Bank of India, Mumbai
 s

This   matter   came   up   for   hearing   on   08.09.2010   pursuant   to 
Commission’s notice dated 27.07.2010.  Appellant was absent, while the 
respondents   were   represented   by   Shri   J.   Venugopal,   AGM   (Law)   and 
Shri M.K. Dubey, AGM (RTI).

2. Appellant, through his RTI­application dated 04.05.2009, requested 
the following items of information:­

“1. Please   furnish   details   of   investments   of   corpus   fund   of  
Rs.17.04   crores  of  SBS  REMBS  Scheme  as   on  13.08.08,  
31.03.09 & 30.04.09, i.e. details such as Name of Securities,  
where invested, date of investments of yield thereof.

  2. Please furnish details of investment of Rs.72/­ crores of P.F.  

surplus   Account   of   SBS   as   on   13.08.08,   31.03.09   and  
30.04.09.     Details   such   as   name   of   securities,   date   of  
investments where invested, yield thereof, etc.”

3. CPIO,   through   a   communication   dated   02.06.2009,   declined   to 
disclose this information citing exemption under Section 8(1)(d) of the RTI 
Act.   Appellate   Authority’s   order   dated   25.06.2009   upheld   CPIO’s 
decision.

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4. Appellant,  who  has  now  challenged  that  order  in second­appeal, 
has   stated   that   he   was   an   employee   of   the   former   State   Bank   of 
Saurashtra,  which  has  now  been  merged  with  the  State  Bank  of India 
(SBI).   He was a beneficiary of the SBS REMBS Scheme, which was a 
medical benefit scheme for retired employees of the Bank, which is now 
being   managed   by   SBI.     He   had   sought   the   information   on   the 
investments made under the Scheme.

5. Appellant   had   stated   that   he   was   also   a   member   of   the   SBS 
Provident Fund and was entitled to know as to how the fund was being 
managed.

6. I notice that the respondents have routinely decided not to disclose 
the information  under Section 8(1)(d) of the RTI Act  ―  treating it as a 
matter   of   their   own   commercial   confidence   ―   without   factoring   in   the  
decision­making the appellant’s own status as a contributor to the above­
mentioned funds.   In my view, he is entitled to receive clear and direct 
replies   to   his   queries,   which   has   been   wrongly   denied   by   quoting   the 
exemption Section 8(1)(d).  A contributor to a fund has the right to know 
whether the managers are investing the funds to optimize the benefit to 
the contributors.  It is odd that rather than acknowledge the contributor’s 
right to be apprised of the investment pattern of the funds collected from 
him and similar others, the Bank considers  it its right not to share any 
information   about   the   manner   of   the   investment   of   these   funds.     It   is 
surprising that they have not yet set­up any system of communicating the 
investment   details   with   those   who   had   a   direct   interest   in   the 
management of the funds, i.e. the contributors.

7. This   matter   needs   to   be   carefully   examined   in   the   light   of   the 
observations   above   and   the   instructions   of   the   Bank   and   the   market 
regulators about transparency in these investments.

8. I would expect serious reflection by the senior officers of the State 
Bank   of   India   so   that   a   well­informed   position   emerges   about 

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transparency   in   these   investments   and   transmission   of   the   relevant 
information to investors.

9. Matter is accordingly remitted back to the Appellate Authority and 
Chief General Manager (Banking Operations), Mumbai with the direction 
that he will examine this matter de­novo after giving an opportunity to the 
appellant to be heard in person and make a decision within four weeks.

10. Matter is accordingly disposed of.

11. Copy of this direction be sent to the parties. 

( A.N. TIWARI )
INFORMATION COMMISSIONER

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