DNA:
Mumbai: Monday, September 24, 2012.
The Reserve
Bank of India, having first refused to furnish information under the Right to
Information Act about the Rs 32,000-crore derivatives fraud despite a Central
Information Commission order, is now refusing to reveal expenditure it incurred
in challenging the CIC decision in the Delhi high court.
“The
information as to fee of lawyers and others are exempt from disclosure under
the RTI Act,” the RBI has said in its reply to a request seeking information on
total legal expenses incurred in the case. The RTI query was filed by Kishanlal
Mittal, a Mumbai-based RTI activist, early this year.
Besides, the
RBI has also refused to provide information on several other cases in which it
has challenged the CIC’s order, stating instead that furnishing information
could “prejudicially affect the interest of RBI in prosecuting the said cases”.
According to
CJ Karira, an RTI expert based in Hyderabad, the RBI cannot reject such
applications. “As per a CIC decision all banks even private ones like HSBC are
supposed to file quarterly returns with the RBI regarding legal expenses
incurred by them. It is therefore funny that the RBI does not want to disclose this
information,” Karira said.
In 2007-08,
due to alleged supervisory lapses on the part of the RBI, several Indian
companies that bought exotic derivatives cumulatively lost about Rs 32,000
crore. Those affected were mainly exporters who had been persuaded to use
sophisticated derivative products to hedge risks owing to currency
fluctuations.
Subsequently,
affected parties filed RTI applications with the RBI seeking details on the
derivatives fraud. Many were rejected on “fiduciary” grounds despite a CIC
order in favour of an applicant calling it a matter of national importance.
However, the
RBI challenged the order in the Delhi high court. The case is likely to come up
before the court in October.
The RBI has
not only refused to share information with the public on the exotic derivatives
fraud, but also with Parliamentarians. In a reply to queries form the Lok
Sabha, the RBI has said that it has not “quantified the quantum of loss” caused
to Indian companies and individuals due to forex derivatives contracts.