{"id":59885,"date":"2010-03-05T00:00:00","date_gmt":"2010-03-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mr-rakesh-agarwal-vs-delhi-integrated-multi-modal-on-5-march-2010"},"modified":"2018-08-09T20:20:31","modified_gmt":"2018-08-09T14:50:31","slug":"mr-rakesh-agarwal-vs-delhi-integrated-multi-modal-on-5-march-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mr-rakesh-agarwal-vs-delhi-integrated-multi-modal-on-5-march-2010","title":{"rendered":"Mr. Rakesh Agarwal vs Delhi Integrated Multi-Modal &#8230; on 5 March, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Central Information Commission<\/div>\n<div class=\"doc_title\">Mr. Rakesh Agarwal vs Delhi Integrated Multi-Modal &#8230; on 5 March, 2010<\/div>\n<pre>                  CENTRAL INFORMATION COMMISSION\n                      Club Building (Near Post Office)\n                    Old JNU Campus, New Delhi - 110067\n                           Tel: +91-11-26161796\n\n                                          Decision No. CIC\/SG\/C\/2009\/001472+001312\/7047\n                                            Complaint No. CIC\/SG\/C\/2009\/001472+001312\n\nRelevant Facts<\/pre>\n<p> emerging from the Complaint:\n<\/p>\n<pre>Complainant                        :       Mr. Rakesh Agarwal,\n                                           House No. B-24, Vikram Nagar,\n                                           New Delhi - 110002.\n\nRespondent                         :       Mr. Suneet Mudgal\n                                           AGM (HR)\n                                           Delhi Integrated Multi-Modal Transit System,\n                                           First Floor, I.S.B.T.\n                                           Kashmere Gate, Delhi - 110006.\n\nBackground:\n<\/pre>\n<p>The Complainant filed two RTI Applications dated 03\/09\/2009 and 14\/10\/2009 with the Delhi<br \/>\nIntegrated Multi-Modal Transit System (DIMTS) seeking certain information. In RTI<br \/>\nApplication dated 03\/09\/2009 the following information had been sought:\n<\/p>\n<p>1.    A full set of information free of cost as required to be disclosed u\/s 4.\n<\/p>\n<p>2.    Reasons for not publishing the information as required u\/s 4.\n<\/p>\n<p>3.    A copy of the shareholders agreement signed with Delhi Government.\n<\/p>\n<p>4.    Copy of disinvestment agreement signed with Delhi Govt. when disinvesting.\n<\/p>\n<p>5.    Copies of documents &amp; records evidencing process\/method of disinvestment.\n<\/p>\n<p>6.    Your annual accounts together with auditors reports for the last five years.\n<\/p>\n<p>7.    Copies of the minutes of board meetings since disinvestment.\n<\/p>\n<p>8.    Are you covered by the audit by CAG?\n<\/p>\n<p>9.    Are your accounts examined by PAC or Committee on Public Undertakings?\n<\/p>\n<p>10.   How much of your revenues come from the government?\n<\/p>\n<p>11.   A list of all major and minor projects received from Transport Department, Delhi upto<br \/>\n      the date of disinvestment by Delhi Government.\n<\/p>\n<p>12.   A separate list of all major and minor projects received from Transport Department after<br \/>\n      the date of such disinvestment.\n<\/p>\n<p>13.   Copies of all project \/ study Reports prepared by you or received from Delhi Govt.\n<\/p>\n<p>14.   Copies of all agreements, contracts, tenders, MOUs, etc. signed with Tpt. Deptt.\n<\/p>\n<p>15.   Copies of all agreements, contracts, tenders, MOUs, etc. signed with external agencies in<br \/>\n      pursuance of or for the execution of projects or works given to you by Delhi Govt.\n<\/p>\n<p>16.   Copies of all notices inviting EOLs, tenders, etc. together with the EOI and tender<br \/>\n      documents.\n<\/p>\n<p>17.   Kindly provide details as to the process and methods adopted by Transport Department<br \/>\n      through which projects are given to you.\n<\/p>\n<p>18.   Kindly provide details as to the process and methods adopted by you for the selection of<br \/>\n      contractors.\n<\/p>\n<p><span class=\"hidden_text\">                                                                                   Page 1 of 8<\/span><\/p>\n<p> 19.    Kindly advise the present status of all projects underway and the expected date of start<br \/>\n       and \/or completion together with timeliness for different stages.\n<\/p>\n<p>20.    A copy of the complete file including all notings correspondence, deliberations, study<br \/>\n       reports, agenda and notices of meetings, minutes of meetings, decisions, etc. that records<br \/>\n       and decision to shift BRT corridor to the left of the road from the centre of the road.\n<\/p>\n<p>The RTI Application was returned by the Respondent along with his letter dated 07\/09\/2009<br \/>\nstating that the DIMTS is not a public authority and that the Complainant may direct his<br \/>\nquestions to the Transport Department.\n<\/p>\n<p>The Complainant approached the Commission on 10\/09\/2009 and Complaint No.<br \/>\nCIC\/SG\/C\/2009\/001312 was registered by the Commission. A notice dated 16\/09\/2009 was sent<br \/>\nto the Respondent stating that prima facie it appeared that information had not been provided<br \/>\nwithout reasonable cause. The Commission directed the Respondent to send his explanation for<br \/>\nnot supplying the information to the Complainant within the mandated time. The Commission<br \/>\nreceived a letter dated 05\/10\/2009 from the Respondent contending that the DIMTS Ltd. is not a<br \/>\nPublic Authority and therefore there is no post for Public Information Officer. It was further<br \/>\nstated that the Complainant could seek the information from the Transport Department.\n<\/p>\n<p>The Commission sent a notice dated 09\/11\/2009 to the Respondent to give his submissions<br \/>\nbefore 29\/11\/2009 to show that DIMTS is not a public authority when out of the eight Directors<br \/>\nof the Board of Directors, four Directors nominated by the Government of Delhi. The<br \/>\nCommission issued a notice of hearing on the matter on 18\/11\/2009 directing the parties to<br \/>\nappear before the Commission on 21\/12\/2009.\n<\/p>\n<p>In RTI Application dated 14\/10\/2009 the following information had been sought:\n<\/p>\n<p>1.     Current status of Clusters policy for buses.\n<\/p>\n<p>2.     Information in the following format for all clusters:<\/p>\n<pre>\nNo of cluster Name Status (Whether proposed planned, approved             Amount of money\n                        under construction or completed.                  received so for from\n                                                                          Delhi Govt.\n\n\n<\/pre>\n<p>3.     Inspection of all data in respect of the above clusters and all files in respect of each<br \/>\n       cluster.\n<\/p>\n<p>4.     Inspection of all clusters on which work has started.\n<\/p>\n<p>The RTI application was returned vide letter dated 13 October 2009 with the comment &#8220;in this<br \/>\nregard, you are advised to take up the request with the Transport Department, GNCTD as the<br \/>\ninformation sought by you is about the policies and projects of the Transport Department.&#8221;\n<\/p>\n<p>The Complainant approached the Commission on 20\/10\/2009 and the Commission registered<br \/>\nComplaint CIC\/SG\/C\/2009\/001472. The Commission issued a notice of hearing on the matter on<br \/>\n04\/11\/2009 directing the parties to appear before the Commission on 16\/12\/2009.\n<\/p>\n<p>Relevant Facts emerging during Hearing on 16 December 2009 for CIC\/SG\/C\/2009\/001472:<br \/>\nThe following were present:\n<\/p>\n<p>Complainant : Mr. Rakesh Agarwal;\n<\/p>\n<p>Respondent : Mr. Suneet Mudgal, AGM (HR); Mr. Rajnish Gautam, Advocate;\n<\/p>\n<p><span class=\"hidden_text\">                                                                                     Page 2 of 8<\/span><\/p>\n<p> The Respondent states that DIMTS is not a public authority. The Respondent has given detailed<br \/>\nreasons arguing why DIMTS is not a public authority in response to the Commission&#8217;s notice for<br \/>\ncomplaint number CIC\/SG\/C\/2009\/001312. The letters of the Respondent dated 05\/10\/2009 and<br \/>\n23\/11\/2009 are taken on record. They have effectively argued that the company is not controlled<br \/>\nby the appropriate Government. The Company is 50\/50 joint venture of the GNCTD and IDFC<br \/>\nLimited.\n<\/p>\n<p>The Complainant states, &#8220;The Company came into being by an order of the GNCTD. Moreover,<br \/>\n49.993% of the shares in the company are held by the GNCTD and another 49.993% are held by<br \/>\nIDFC Limited. The rest of the shares are held by the Government Nominees i.e. The Chief<br \/>\nSecretary of Delhi, Principal Secretary (Transport), Principal Secretary (Finance) and one more<br \/>\nnominee. The money paid by Government nominees towards the value of the shares was<br \/>\nreimbursed by the GNCTD effectively the share holding of the Government beyond 50%.\n<\/p>\n<p>The matter was adjourned and the Commission observed that the submissions will be taken from<br \/>\nboth parties on 21\/12\/2009 at 10.00am in the Complaint No. CIC\/SG\/C\/2009\/001312.\n<\/p>\n<p>Relevant Facts emerging during Hearing on 21 December 2009 for Complaint No.<br \/>\nCIC\/SG\/C\/2009\/001472 and CIC\/SG\/C\/2009\/001312:\n<\/p>\n<p>The following were present:\n<\/p>\n<p>Complainant : Mr. Rakesh Agarwal;\n<\/p>\n<p>Respondent : Mr. Suneet Mudgal, AGM (HR); Mr. Rajnish Gautam, Advocate;\n<\/p>\n<p>Mr. Rajnish Gautam, Advocate for the Company alleges that the bench is prejudiced and he does<br \/>\nnot expect to get justice from this bench. It is curious that he had appeared before this bench<br \/>\nearlier and had said that he should like to argue the matter at the next hearing and has now come<br \/>\nup with the allegation of the bench being prejudiced. He was asked by the Commission to give<br \/>\nreason why he believes the bench was prejudiced against the company and whether the bench<br \/>\nhad any known bias against the Company. He states, &#8220;That the Commission already held<br \/>\nDIMTS to be a public authority vide it letter dated 16 September 2009 wherein the Hon&#8217;ble<br \/>\ncommissioner had instructed it to provide the information or face penal consequences as<br \/>\nprovided under the Act which is against the principle of natural justice and the very basic tenets<br \/>\nof audi altrem partem which categorically states that no one should be condemned unheard and<br \/>\nalso in view of the observation made by the Hon&#8217;ble commission at the end of the proceeding<br \/>\ndated 16 December 2009 wherein the Hon&#8217;ble Commissioner had opined that it would be<br \/>\nextremely difficult for DIMTS to prove this case and therefore in view there of and also for a<br \/>\nbetter appreciation of facts and law I am requesting that the case may be referred to a larger<br \/>\nbench.&#8221;\n<\/p>\n<p>The Complainant states, &#8220;Leveling of allegations by the Respondent is just a tactic to delay the<br \/>\ndecision in the matter. The Respondent has not come to the Commission with clean hands. On its<br \/>\nwebsite as well as during the hearing dated 16 December 2009, the respondent stated that the<br \/>\nCompany DIMTS is a 50\/50 Joint venture company in partnership with GNCTD. The fact is that<br \/>\nby their own letter dated 01 October 2009 addressed to the finance department of GNCTD, the<br \/>\nRespondent has given a list of shareholders wherein it has shown that IDFC holds 49.998% of<br \/>\nthe shares whereas rest of the shares amounting to more than 50% are held by the Government of<br \/>\nDelhi and Government nominees. Therefore, it is my request that the request of the respondent to<br \/>\nrefer the matter to a larger bench may not be acceded to. If there is any bias in the mind of the<br \/>\ninformation commissioner, it should be against me because I am contemplating filing a writ in<br \/>\nDelhi High Court against the order of Hon&#8217;ble Commissioner in another matter and this fact was<br \/>\nmentioned to him when I was not satisfied with the decision.&#8221;\n<\/p>\n<p><span class=\"hidden_text\">                                                                                      Page 3 of 8<\/span><\/p>\n<p> The Respondent states, &#8220;The contentions of the Complainant as raised are without any merit and<br \/>\nthe plea as taken by the Complainant about contemplating and filling of a writ does not<br \/>\nnecessarily require to be brought in the proceedings of the case as it does not have any relation<br \/>\nwith the case.&#8221;\n<\/p>\n<p>The Commission notes that an allegation of prejudice has been leveled by an advocate against<br \/>\nthe statutory authority without any basis at all. It is distressing that the minimum requirement of<br \/>\nrespect for statutory authority is lacking and no evidence has been produced to show any bias of<br \/>\nthe Commission. However, the Commission is adjourning the matter to contemplate further<br \/>\naction. The respondent states he has not brought any written submission but has given his<br \/>\npreliminary objection to the Commission against hearing the matter. The Complainant states that<br \/>\nthis is urgency since many major public projects are being handled by the DIMTS.\n<\/p>\n<p>The matter was adjourned.\n<\/p>\n<p>Commission&#8217;s decision on the matter of the allegations by Mr. Rajnish Gautam on 22<br \/>\nDecember 2009:\n<\/p>\n<p>The bench went through the papers and the submissions of Mr. Rajnish Gautam to see if the<br \/>\nallegation of prejudice against the Commissioner had any merit. The Commission notes that on<br \/>\nthe first hearing on 16\/12\/2009 the advocate Mr. Rajnish Gautam had first sought an<br \/>\nadjournment of the proceedings and only very reluctantly agreed to admit that information was<br \/>\nnot being given since they claimed that DIMTS was not a public authority. The Commission&#8217;s<br \/>\nnotice dated 16\/09\/2009 stated that from the facts it appeared prima facie that the information<br \/>\nhad been denied without any reason. The Law Lexicon defines &#8216;prima facie&#8217; as at first sight or on<br \/>\nfirst appearance. No decision was made by the Commission through its notice. In fact the notice<br \/>\nalso gave the Respondent an opportunity to explain why the information was provided to the<br \/>\nComplainant. After receiving the submissions on behalf of the Respondent, in both cases, the<br \/>\nCommission did not decide the Complaint but gave the Respondent an opportunity to prove that<br \/>\nit was not a public authority. A charge of bias appears to be inappropriate when a proper<br \/>\nopportunity of hearing has been provided to both sides.\n<\/p>\n<p>Furthermore, after the Complainant had given his statement that DIMTS has a Government stake<br \/>\nof over 50%, the Commission had only made an observation that if this was the case the<br \/>\nRespondent would have to give its arguments showing how it was not a public authority by<br \/>\ncountering the claim of the Complainant. Asking the Respondent to place its arguments on this<br \/>\nmatter cannot be construed as bias. Looking at the overall conduct of Mr. Suneet Mudgal and<br \/>\nMr. Rajnish Gautam it appears to the Commission that their sole objective is to delay any<br \/>\ndecision in the matter. They have been unwilling to offer any rational explanations. Given these<br \/>\ncircumstances the bench decides that since no rational charge of bias or prejudice has been<br \/>\nestablished, the bench will hear the matter and decide on the merits of the case.\n<\/p>\n<p>The Commission issued a notice of hearing in both the matters on 22\/12\/2009 directing the<br \/>\nparties to appear before it on 07\/01\/2009 at 4 pm.<\/p>\n<p>On 07\/01\/2010 at around 2 p.m., Mr. Suneet Mudgal submitted a letter to the Commission<br \/>\nstating that an application dated 07\/01\/2010 had been moved by the Respondent before the Chief<br \/>\nInformation Commission to reconstitute the Bench of the Commission to hear the matter.<br \/>\nTherefore, it was requested that the matter be adjourned.\n<\/p>\n<p><span class=\"hidden_text\">                                                                                       Page 4 of 8<\/span><\/p>\n<p> Relevant facts arising during the hearing on 07\/01\/2010:\n<\/p>\n<p>The following persons were present:\n<\/p>\n<p>Complainant: Mr. Rakesh Agarwal<br \/>\nRespondent: Absent<\/p>\n<p>Mr. Rakesh Agarwal submitted a letter issued by the DIMTS to the Finance Department dated<br \/>\n01\/10\/2009 which shows that the shareholding of DIMTS. He also submitted a copy of the<br \/>\nOffice Memorandum dated 30\/07\/2009 issued by the Transport Department of the Government<br \/>\nof Delhi stating the Terms of Engagement of DIMTS. He further submitted that every single<br \/>\nproject of the DIMTS is that of the government and therefore it is fully financed by the public<br \/>\nfunds.\n<\/p>\n<p>The matter was adjourned for further consideration.\n<\/p>\n<p>The Commission received the Chief Information Commissioner&#8217;s decision dated 21\/01\/2010<br \/>\nrejecting the application moved by the Respondent for re-constitution of the Commission&#8217;s<br \/>\nBench. On receiving this decision, the Commission issued a notice of hearing dated 08\/02\/2010,<br \/>\ninforming both parties of the Chief Information Commissioner&#8217;s decision and directing both<br \/>\nparties to appear before the Commission on 03 March 2010 at 4 pm for a final hearing in the<br \/>\nmatter.\n<\/p>\n<p>Relevant facts arising during the hearing on 03\/03\/2010:\n<\/p>\n<p>The following persons were present:\n<\/p>\n<p>Complainant: Mr. Rakesh Agarwal;\n<\/p>\n<p>Respondent: Mr. Suneet Mudgal, AGM (HR); Mr. Rajnish Gautam, Advocate;\n<\/p>\n<p>       The Respondents has given written submission to the Commission. The Commission<br \/>\nasked the Respondents if they want to say anything. The Respondent states, &#8220;We have submitted<br \/>\nour written submission in case the Hon&#8217;ble Commission desires to have some other clarifications<br \/>\nthe we would be happy to provide the same.&#8221;\n<\/p>\n<p>The Respondent was asked if they have got the list of Directors DIMTS. The Respondent states<br \/>\nthat he is unable to provide the names of the Directors of DIMTS. The Respondent is directed to<br \/>\nprovide the names of the Directors giving details of their employment. If any of the Directors are<br \/>\nGovernment Employees this would be indicated even if they are on deputation. The Respondent<br \/>\nwill provide the information by 5.00PM on 04\/03\/2010.\n<\/p>\n<p>The Appellant states that the Managing Director is Mr. S. N. Sahai who is an IAS officer on<br \/>\ndeputation from the Government. The Respondents volunteer the information that there are eight<br \/>\ndirectors in DIMTS out of whom seven are non-executive Directors. The Respondents do not<br \/>\ndispute the fact that Mr. S. N. Sahai is a Managing Director of DIMTS.\n<\/p>\n<p>Decision announced on 05 March 2010:\n<\/p>\n<p>The Respondent has submitted additional submissions to the Commission on 04\/03\/2010 in<br \/>\nwhich they have enclosed a list of Directors of DIMTS, copies of two decisions of the<br \/>\nCommission &#8211; CIC\/AT\/A\/2006\/00123 dated 29\/01\/2007 (AWHO case) and<br \/>\nCIC\/AT\/A\/2007\/00389 dated 27\/12\/2007 (BALCO case). The Commission has perused all<br \/>\nsubmissions made by the parties during the hearings and in writing.\n<\/p>\n<p>The issue before the Commission is whether DIMTS is a public authority as per Section 2(h) of<br \/>\nthe Right to Information Act 2005. Section 2(h) of the RTI Act defines public authority as<br \/>\n       2 (h) &#8220;public authority&#8221; means any authority or body or institution of self government<\/p>\n<p><span class=\"hidden_text\">                                                                                      Page 5 of 8<\/span><br \/>\n                established or constituted-\n<\/p>\n<pre>               (a)      by or under the Constitution ;\n               (b)      by any other law made by Parliament;\n               (c)      by any other law made by State Legislature;\n               (d)      by notification issued or order made by the appropriate Government,\n\n               and includes any-\n                       (i) body owned, controlled or substantially financed;\n<\/pre>\n<p>                       (ii) non-Government organisation substantially financed,<br \/>\n               directly or indirectly by funds provided by the appropriate Government;\n<\/p>\n<p>The DIMTS is not established by or under the Constitution; by any law made by the Parliament<br \/>\nor State Legislature or by a notification or order made by the appropriate Government. It is a<br \/>\nJoint Venture Company set up by the Government of Delhi and the Infrastructure Development<br \/>\nFinance Company Ltd. and it is governed by the provisions of the Companies Act. Therefore, for<br \/>\nthe DIMTS to be considered as a public authority it has to be established that it is a body owned,<br \/>\ncontrolled or substantially financed directly or indirectly by the finds provided by the appropriate<br \/>\nGovernment.\n<\/p>\n<p>The Parliament in its wisdom has deliberately chosen to use the words &#8216;owned&#8217;, &#8216;controlled&#8217; or<br \/>\n&#8216;substantially financed&#8217; with the conjunction &#8216;or&#8217;. Therefore each of these words must be given<br \/>\nan independent meaning and if any one of them is applicable, the body would be considered to<br \/>\nbe a public authority. The word &#8216;control&#8217; has not been defined in the RTI Act. Furthermore, the<br \/>\nAct does not require pervasive control.\n<\/p>\n<p>The Respodents has stated &#8211;\n<\/p>\n<p>For want of definition of the work &#8220;Control&#8221; within the RTI Act, reliance is placed upon other<br \/>\nstatutes which define the term as under:\n<\/p>\n<blockquote><p>    i)      Accounting Standard Interpretation (ASI) 24, Definition of &#8220;Control&#8221; &#8211; Accounting<br \/>\n            Standard (AS) 21, Consolidated Financial Statement, defines Control as under:-\n<\/p><\/blockquote>\n<blockquote><p>            a) The ownership, directly or indirectly through subsidiary (ies), of more than one<br \/>\n                half of the voting powers of an enterprise; or\n<\/p><\/blockquote>\n<blockquote><p>            b) Control of the composition of the board of directors in the case of a company or<br \/>\n                the composition of the corresponding governing body in case of any other<br \/>\n                enterprise so as to obtain economic benefits from its activities.\n<\/p><\/blockquote>\n<blockquote><p>    ii)     Regulation 2(i) (c)of SEBI (Substantial Acquisition of Shares and Takeovers)<br \/>\n            Regulations, 1997 (the &#8220;Regulations&#8221;) defines Control as under:\n<\/p><\/blockquote>\n<blockquote><p>            &#8211;       Control includes the right to appoint a majority of Directors, or to control the<br \/>\n                    management or policy decisions exercisable by a person acting individually<br \/>\n                    or in concert, directly or indirectly, including by virtue of Shareholding or<br \/>\n                    management rights or shareholders agreement or voting agreement or in any<br \/>\n                    other manner.\n<\/p><\/blockquote>\n<p>It would imply that the word Control includes (i) the right to appoint majority of the Directors<br \/>\nor (ii) exercise control over management or policy decisions, directly or indirectly.\n<\/p>\n<p>Therefore, upon a bare perusal of the available definition of the word &#8216;Control&#8217;, it is abundantly<br \/>\nclear that the work Control would mean a stake excess of 50% or the management control of the<br \/>\ncompany. Management Control means and includes the act of managing and controlling the<br \/>\naffairs and \/ or business by direction or regulation or administration or control or<br \/>\nsuperintendence. As per and in accordance with Section 2(26) of the Companies Act, 1956,<br \/>\nwhich defines and vest the substantial powers of management with the Managing Director, the<\/p>\n<p><span class=\"hidden_text\">                                                                                        Page 6 of 8<\/span><br \/>\n management of DIMTS vests with MD &amp; CEO of the company who is a nominee of IDFC.<br \/>\nAccording to the Indian Corporate Law also, &#8216;Control&#8217; is defined by direct ownership of a<br \/>\nmajority stake or at least 51% of the total shareholdings.\n<\/p>\n<p>Any company where over 50% shareholding is held by one entity, it would said to be owned by<br \/>\nsuch an entity and logically follows that such an entity would have the power to appoint over<br \/>\n50% of the Directors. This in common parlance would be clearly understood as &#8216;owned&#8217;.<br \/>\nParliament has not used the word fully owned as a separate category. Therefore, in interpreting<br \/>\nthe RTI Act we would accept that when the appropriate government holds over 50% of the<br \/>\nshares, it would be construed as being owned by the government. The phrase &#8216;substantially<br \/>\nfinanced&#8217; may then therefore be applied to a company where the shareholding of the appropriate<br \/>\ngovernment is 50% or less.\n<\/p>\n<p>The Respondent has stated the following in his submissions:\n<\/p>\n<p>&#8220;In pursuance of SHA, (approx.) 50% shares were allotted to IDFC on 1.8.2007. it is pertinent to<br \/>\nmention that at the time of incorporation of SPV, as required under law, six shares were held by<br \/>\nsix government nominees and 494 shares were held by another government nominee for an on<br \/>\nbehalf of Lieutenant Governor of Delhi. The shareholding of the company, pursuant to the<br \/>\nallotment of shares to IDFC, was increased to total paid up capital of 1,46,084 shares. Thereafter,<br \/>\nvide a Board Meeting of the Directors dated 14th October 2009, six more shares were allotted to<br \/>\nIDFC nominees and accordingly the shareholding of GNCTD and IDFC in the Company, in<br \/>\naccordance with the SHA, became 50% each with paid up share capital of 1,46,090 shares of<br \/>\nRs.1,000\/- each.&#8221;\n<\/p>\n<p>From the submissions of the Respondent it is clear that the shareholding of the DIMTS is equally<br \/>\nshared by the Government of Delhi and the IDFC. According to the Respondent, the entity with<br \/>\nover 51% share holding exercise control over the company. This would mean that the DIMTS is<br \/>\nnot controlled by any entity which is certainly not an acceptable conclusion. Since, the<br \/>\nRespondent has admitted that the government&#8217;s shareholding is 50% DIMTS is a company in<br \/>\nwhich government has a substantial finance.\n<\/p>\n<p>The Respondent in his submissions to the Commission has stated that the DIMTS is managed<br \/>\nand controlled by the Board of Management of the DIMTS which has eight Directors of which<br \/>\nfour are nominated by the Government of Delhi as ex-officio members. He has further stated-<br \/>\n&#8220;All Directors of the Company including the Chairman, except the Managing Director &amp; Chief<br \/>\nExecutive officer who is the sole Executive Director, are Non-Executive Directors and no salary<br \/>\nis paid to them.\n<\/p>\n<p>The position that four Director of DIMTS Limited are nominated by GNCTD does not imply<br \/>\ncontrol over the affairs of the Company. A Non-Executive Director is defined as a non-working<br \/>\ndirector of the Company who is not an Executive Director and, therefore, does not participate in<br \/>\nday-to-day management of the Company. A Non-Executive Director is, therefore a part time<br \/>\noffice holder, without day-to-day operational responsibility of a Company.&#8221;\n<\/p>\n<p>As fifty percent of the Directors are government nominees, the Government can undoubtedly<br \/>\nexercise significant control over the management of the company through the Directors of the<br \/>\ncompany who are government nominees. Four of the eight members of the Board of the DIMTS<br \/>\nare Government officers; therefore four of the eight members of the Board owe their positions<br \/>\non the board due to their nomination by the Government. The four Government officers are<br \/>\nexpected to represent the Government. If 50% of the Board is made up of Government officers<br \/>\nwho are nominated by the Government, they are so nominated to represent the views of the<br \/>\nGovernment and it is not necessary for the Government to issue daily directions to such<\/p>\n<p><span class=\"hidden_text\">                                                                                       Page 7 of 8<\/span><br \/>\n nominees. A Government officer, once nominated by the Government to perform certain<br \/>\nfunctions, is expected to act in accordance with the government&#8217;s position. The fact that he is an<br \/>\nExecutive or Non-executive Director is not a relevant consideration. A vote of a Director in a<br \/>\nBoard of Directors meeting is not affected by whether he is a Executive or Non-Executive<br \/>\nDirector. The Government nominee discharges his duties not in a private capacity but as a<br \/>\nrepresentative of the Government. Like any other Government officer, he does not require<br \/>\ndirections from the government to carry out each of his duties &#8211; as a Government officer he is<br \/>\nassumed to be acting on behalf of the Government. Thus it can certainly be stated that the<br \/>\nGovernment is in control of the Board of DIMTS through its nominees.\n<\/p>\n<p>The BALCO decision relied on by the Respondent is not a relevant precedent as the Commission<br \/>\nin that case clearly held that &#8220;it was not necessary to determine and say a final as to whether<br \/>\nBALCO is &#8220;Public Authority&#8221; or not under the Act&#8221;.\n<\/p>\n<p>The Commission therefore finds that DIMTS is substantially financed by the Government. It is<br \/>\nalso controlled by the Government of Delhi. If any one of these conditions were satisfied,<br \/>\nDIMTS would be a public authority as defined in the RTI Act. Here it satisfies two conditions<br \/>\nlaid down in Section 2(h)(i) of the RTI Act.\n<\/p>\n<p>Complaint is allowed.\n<\/p>\n<p>DIMTS is a public authority as defined under Section 2(h) of the RTI Act. DIMTS is directed to<br \/>\nappoint a Public Information Officer and First Appellate Authority before 31 March 2010. It is<br \/>\nfurther directed to provide the information sought by the Complainant in both his RTI<br \/>\nApplications before 15 April 2010. If the information in response to certain queries is not held by<br \/>\nDIMTS, it is directed to transfer those particular queries to the concerned public authority within<br \/>\nfive days of receiving this order with intimation to the Complainant and the Commission.\n<\/p>\n<p>This decision is announced in open chamber.\n<\/p>\n<p>Notice of this decision be given free of cost to the parties.\n<\/p>\n<p>Any information in compliance with this Order will be provided free of cost as per Section 7(6) of RTI Act.\n<\/p>\n<p>                                                                                           Shailesh Gandhi<br \/>\n                                                                                 Information Commissioner<br \/>\n                                                                                            05 March 2010<\/p>\n<p>(In any correspondence on this decision, mention the complete decision number.) (BK)<\/p>\n<p><span class=\"hidden_text\">                                                                                                      Page 8 of 8<\/span>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Central Information Commission Mr. Rakesh Agarwal vs Delhi Integrated Multi-Modal &#8230; on 5 March, 2010 CENTRAL INFORMATION COMMISSION Club Building (Near Post Office) Old JNU Campus, New Delhi &#8211; 110067 Tel: +91-11-26161796 Decision No. CIC\/SG\/C\/2009\/001472+001312\/7047 Complaint No. CIC\/SG\/C\/2009\/001472+001312 Relevant Facts emerging from the Complaint: Complainant : Mr. Rakesh Agarwal, House No. B-24, Vikram Nagar, New [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[39,1],"tags":[],"class_list":["post-59885","post","type-post","status-publish","format-standard","hentry","category-central-information-commission","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mr. Rakesh Agarwal vs Delhi Integrated Multi-Modal ... on 5 March, 2010 - Free Judgements of Supreme Court &amp; 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