Saturday, September 05, 2015

HC gives tarikh pe tarikh to hear CIC order for bringing Mumbai Airport under RTI

Moneylife: Pune: Saturday, 05 September 2015.
An activist, who has been fighting a lone battle to bring Mumbai International Airport under the RTI Act, continues to be stonewalled by postponements for four years
This is a classic case of how a decision by the Central Information Commission (CIC) is stonewalled by the vested interests, in keeping a public-private-partnership (PPP) with the Ministry of Aviation, outside the ambit of RTI Act. Pune-based RTI activist Sanjay Shirodkar has been knocking at the doors of the Delhi High Court, which has given 13 dates since 2010, the latest seeking submission from the Right to Information (RTI) activist, on 31 August 2015. Shirodkar exasperatedly states, “Tarikh pe tarikh and stay is on. This is my lonely battle as a citizen and taxpayer against a giant. Let us hope the Court gives an order and RTI is implemented in this big PPP.”
The ministry of Civil Aviation handed over its profit-making Mumbai International Airport (MIL) to a private company, GVK for modernization in 2006. The initial capital put by Airport Authority of India (AAI) was Rs250 crore. It also gave on lease, land of 2,000 acres worth Rs80,000 crore for a rent of Rs100 a year only and that too for 30 long years. A consortium led by the IDBI has given Rs9,000 crore towards Infrastructure loan and the Government of Maharashtra has waived off stamp duty of Rs250 crore for the project.
Further, as mandated by the Government, on 2 March 2006, a special purpose vehicle (SPV) was formed for the Mumbai Airport. On 4 April 2006, Operations Management and Development Agreement (OMDA) were signed. As per the shareholders agreement, 26% shares in the SPV were allotted to AAI and 74% shares allotted to GVK. This implies (as per the CIC order of 30 May 2011 ) that “Mumbai International Airport Ltd is a Joint Venture Company in which 26% shareholding is held by the Airport Authority of India (AAI) and this gives control to the AAI over vital matters which require 3/4th majority.”
Pune-based RTI activist, Sanjay Shirodkar, filed a RTI application on 9 January 2008 to the Public Information Officer (PIO) of MIAL demanding transparency under the RTI Act. However, the PIO in his reply on 13 February 2008 stated that MIAL is not public authority, quoting the case of Delhi International Airport Ltd, which does not come under RTI, despite the fact that it was declared Public Authority under the RTI Act on 17 January 2007 by a CIC decision.
Shirodkar then filed a complaint with the Central Information Commission on 20 February 2008. The CIC took cognizance of the complaint and called both the parties for hearing on 11 June 2008. The CIC passed an order, declaring MIAL as public authority under the RTI Act and ordered it to appoint a PIO within 30 days of receipt of the order. 
The order stated, “We find no hesitancy in declaring MIAL as a Public Authority under Clauses (d) and (i) respectively, of Section 2(h) of the RTI Act. MIAL shall appoint a CPIO and FAA within 30 days of the receipt of this Order and shall also fulfill the mandate of Section 4(1) disclosure as mandated under the RTI Act, within 2 months of the receipt of this Order.’’
CIC Sushma Singh concluded that MIAL is public authority on the basis of the following sections of the RTI Act. Her order states: “The only provision which concerns us is clauses (d) and (i) respectively, of Section 2(h).  
Section 2(h) is reproduced here for the sake of clarity:
2. Definitions – In this Act, unless the context otherwise requires,-- (h) "public authority" means any 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 organisation substantially financed, directly or indirectly by funds provided by the appropriate Government; (emphasis added).”
MIAL goes to Court
However, MIAL did not obey CIC order which prompted Shirodkar to file a complaint with the CIC. In the meanwhile, MIAL went to the Delhi High Court which passed an order on 22 November 2010, wherein the CIC order was set aside, “on the ground that no opportunity provided to the MIAL for presenting its case. The High Court further directed the CIC to restore the appeal of Shirodkar and hear both the sides and accordingly, pass a reasoned order thereon.’ Accordingly, the CIC once again held a hearing on 30 May 2011, pronouncing MIAL as public authority.
The MIAL, in its submission to the Delhi High Court has stated that it cannot come under the RTI Act because:
1)    The Petitioner No. 1 is an agent or instrumentality of State and therefore “State” within the meaning of Article 12 of the Constitution of India.
2)    The Airports Authority of India Act, 1994 had to be amended in the year 2003 to enable private entities to perform the functions of AAI.
3)    The Petitioner No. 1 is a lessee of the AAI of the airport land. The said lease has been created by virtue of S.12-A of the Airports Authority of India Act, 1994,’’’
Ever since, there have been postponements to Court hearings from the MIAL side
Shirodkar was asked to once again file a submission to the Delhi High Court, which his advocate has done on 31 August 2015. He has made the following points:
      I.        As per, Ministry of Civil Aviation a Group of Ministers was constituted to examine National Civil Aviation Policy (NCAP) on 27 June 2007. But Mumbai Airport PPP was awarded before that in 2006.
    II.        Cabinet Secretariat says, they do not have information regarding GoM – Group of Ministers for Ministry of Civil Aviation, CAG report on Ministry of Civil Aviation.
   III.        Mega airports of Mumbai and Delhi were transferred to JVC. Govt. of Maharashtra waived off Stamp Duty of Rs250 crores for MIAL.
  IV.         MIAL PPP project is worth more than Rs10,000 crore. Still there is no info with SEBI, BSE, and NSE. Even Ministry of Civil Aviation, Airports Authority of India, DGCA, AERA, PPP Cell of MINFIN, Ministry of External Affairs are unable to provide information on stake transfer worth Rs1,140 crore from the company in Hyderabad India i.e. GVK Airport Holdings Pvt Ltd to a company in Mauritius, i.e. Bid Services Division (Mauritius) Ltd.
    V.       Oil PSUs like HPCL, BPCL, IOC also started using banking norms of fiduciary capacity, and commercial confidence.  HPCL outstanding amount to be recovered from KingFisher Airline is Rs525 crore, Air India Rs581 crore, Paramount Airways Rs19 crore. HPCL, BPCL and IOC give no information regarding bounced cheques and discounts offered to any airline. They term it as Commercial and Trade Secret.
  VI.        AERA listed aeronautical revenues, but could not provide list of non-aeronautical revenues of MIAL PPP.
 VII.         CAG has not done any audit of MIAL PPP, which is a project worth Rs10,000 crore
VIII.        The Supreme Court of India in its recent Judgment dated 9 August 2011 in the case of CBSE & Anr vs. Aditya Bandopadhyay & Ors’ [C.A. No.6454/2011 arising out of SLP (C) No.7526/2009] has fully acknowledged the regulatory powers exercisable by the CIC under the RTI Act.
  IX.          While deciding a substantial question of law involving interpretation of Section 2 (h) of the RTI Act, the Court may also note that when the Government contributed Rs65 crore, Public Health Foundation of India (PHFI), was declared a public authority. Land was given on concessional rate, hence it was also considered as funding by government.
Hence, this Court may be pleased to dismiss the present petition with direction to the petitioner to comply with the impugned order dated 30/05/2011 of the CIC in full.