Economic Times: New Delhi: Tuesday, July 18, 2017.
The Reserve
Bank of India on Monday told the Supreme Court that a host of laws mandate the
banking regulator to maintain secrecy on borrowings and borrowers information
that cannot be revealed to all and sundry under RTI, the 2005 transparency law.
This prompted
the apex court to say it would examine all these aspects again. The order by a
two-judge bench led by Chief Justice of India JS Khehar implies that RBI may
not, for now, reveal details of borrowers and borrowings to the public under
the Act, despite an earlier ruling binding it to do so.
The regulator
wants the court to revisit the issue in a public interest litigation (PIL), in which
the court has sought details of all non-performing assets (NPAs) in the public
sector banking system.
RBI counsel
Jaideep Gupta told the bench also comprising Justice DY Chandrachud that the
regulator was bound to maintain secrecy on all such aspects. “There are a
series of laws which say such information cannot be given,” he said.
The bench was
dealing with a fresh PIL filed by NGO CPIL, drawing the court’s attention to some
suspect advances made by housing corporation Hudco.
The court has
earlier issued notices to the RBI in this case, asking it to submit details of
all borrowers who owe the system Rs 500 crore and above. RBI had resisted
making such information public and offered to submit details in sealed cover,
after which the court asked RBI to file an affidavit A Supreme Court bench had, in December
2015, ruled that RBI was mandated to reveal details under RTI.
Justices MY
Eqbal and C Nagappan had rejected the regulator’s plea then that the bank was
obliged to keep such details secret on two counts ensuring confidence in the bank-ing system
and the fiduciary relationship it shared with banks.
The court had
then ruled that RBI’s first commitment was to the public and national interest
and it shared no relationship of trust with banks and was not obliged to
withhold any information from the public.
Appearing for
the NGO, activist lawyer Prashant Bhushan complained that though the Supreme Court’s
2015 ruling had mandated the RBI to share such information, it was refusing
citing the latest pending petition.
“Let the RBI
file a response,” said Khehar, directing that the case be listed for final
hearing after all sides had completed filing their legal submissions.
That leaves
the Reserve Bank with no obligation to reveal any details to information
seekers under RTI for now.