Daily Excelsior: Jammu: Tuesday, November 27,
2018.
Notwithstanding much hue and cry from
Kashmir valley based politicians and separatists over the recent decision of
the State Administrative Council headed by Governor Satya Pal Malik bringing
Jammu and Kashmir Bank Ltd under the purview of transparency law, the Full
Bench of State Information Commission (SIC) had declared the bank as Public
Authority as defined in Section 2 of the State Right to Information Act way
back in 2012.
However, the judgment was not implemented
by the successive Governments for obvious reasons although all the
apprehensions about frivolous applications aimed at breaching the trust between
the banker and the depositors were dispelled by the State Information
Commission on the ground of adequate safeguards provided in the Act.
Several residents of the State and RTI
activists while exercising their right conferred on them under Section 3 of the
J&K RTI Act, 2009 had filed applications before the then Chairman of the
J&K Bank Limited seeking information on various aspects.
However, these applications were rejected
by the then Chairman on the ground that Bank doesn’t fall under the purview of
the J&K RTI Act. Finally, the applicants knocked the doors of the State
Information Commission, which clubbed the applications for hearing. As an
important question of law was involved, a Full Bench of the Commission was
assigned the task.
The Full Bench comprising the then Chief
Information Commissioner G R Sufi and the then Information Commissioners Dr
Sudesh Kumar Sharma and Nazir Ahmad on April 24, 2012 delivered a landmark
judgment declaring J&K Bank Ltd as Public Authority as defined in Section 2
of the State RTI Act. The Commission had also directed the then
Chairman-cum-Chief Executive Officer of the Bank to designate First Appellate
Authorities, Public Information Officers and Assistant Public Information
Officers as provided under Section 5 of the RTI Act.
“The J&K Bank is considered to be one
of first State banks in the country. According to the extended Central Laws to
the State, the J&K Bank was characterized as a Government Company as per
the provisions of the Indian Companies Act, 1956. In 1971 the Bank was accorded
the status of Scheduled Bank and in 1976 it was declared as ‘A’ class Bank by
RBI”, the SIC had observed, adding “the Comptroller & Auditor General of
India exercises its jurisdiction while auditing the Bank. The State Audit Authorities
are also auditing the accounts of the Bank. All these factors strengthen
Government control and influence over J&K Bank Ltd”.
The Commission had further observed: “The
Government has further tightened its control over the Bank as is evident from
the happenings/events the State Legislature has established its authority over
the Bank through Committee on Public Enterprise and directed the Bank
authorities to appear before it and carry out the instructions and directions
for ensuring speedy recovery of loans advanced by the Bank. These developments
are not mere formalities. They indicate that the Bank is a Public Authority
within the definition of Section 2 of the State RTI Act, 2009”.
Similarly, the former Chairman of the
J&K Bank was suddenly asked to resign from the Chairmanship and he had to
tender his resignation; the Finance Secretary of the State was nominated as the
Chairman of the Bank but later on Reserve Bank of India‘s intervention the
Collegium comprising of Finance Secretary and other Government nominated
“Directors” were exercising the powers of the Chairman.
“The CAG’s audit control cannot be
dismissed merely by saying that it is a requirement under the Companies Act,
1956. Only the Government companies are subjected to such audit. Government
companies are nothing but Public Authorities established, owned, controlled by
the Government. The J&K Bank may not be a ‘State’ as defined under Article
12 of the Constitution of India, but the Commission is of the considered
opinion that it fulfils all the limbs of Section 2 of the State RTI Act, 2009”,
the Full Bench had mentioned in the judgment.
The SIC had further observed, “the
J&K Government exercises its dominating influence and control through the
Chairman of the Bank and through its Government nominee Directors. Moreover,
J&K Bank has always carried out guidance, instructions and wishes of the
Government, whether it be granting extra ordinary overdrafts, whether it is
subsidy schemes, whether it is the appointment and removal of the Chairman at
the wish and pleasure of the Government. Therefore, the Government has ‘defacto
control’ over the multifarious activities of J&K Bank Ltd”.
Stating that Government also enjoys
substantial financial control over the Bank, the Information Commission had stated:
“J&K Bank is a profit making company and that the State Government had not
merely made an investment in the Bank for earning profit. The dominant role
played by the then Maharaja’s Government in establishing the Bank with 92%
share capital and the interest taken, control exercised and guidance given by
the successive Governments after 1947 make it abundantly clear that the
intention of the State Government was not to earn profit but to nurture and
flourish the J&K Bank as an organization of the State for the financial and
economic prosperity and betterment of the people of the State”.
“The J&K Bank has reached its present
zenith and heights only because of the patronage of the State Government which
nourish its programmes at appropriate times and but for the contribution of the
State Government, J&K Bank would have not seen the light of the day”, the
Full Bench had recorded in the judgment.
It was further stated by the Commission
that J&K Bank caters to the banking needs of millions of citizens of the State
and also various other parts of the country. They have a stake in the
functioning and working of this premier banking institution of the State.
“Hence it would be against the basic spirit of the intention of the State
Legislature as expressed in preamble of the Act to deny the citizenry the right
to information with regard to J&K Bank Ltd when the same is available to
their countrymen in rest of the country so far their dealings with nationalized
banks and State bank are concerned”, reads the judgment.
On the basis of different judgments of
several High Courts of the country, the Full Bench of SIC had finally declared
the J&K Bank as a Public Authority as defined in Section 2 of the J&K
RTI Act, 2009 for fulfilling the conditions therein.
Pointing towards the apprehensions of the
counsel for the J&K Bank that bringing the bank under the ambit of State
RTI Act will open flood gates for certain exploiters with vested interest to
make frivolous applications which may breach the trust between the banker and
depositors, the Commission had observed, “banking institutions are generally
based on the trust and confidence of depositors and to maintain the same there
are adequate safeguards provided in the Act under Section 8 particularly Sub
Section (d), (e) and (i) and Section 10 and 11 of the State RTI Act and we hope
that with proper training to PIOs and FAAs, the safeguards given in these
provisions of law will be fully implemented if the facts of the case so
warrant”.
The Commission had directed for giving
effect to the order within a period of one month from the date of its receipt.
However, the implementation of judgment was not paid serious attention by the
successive Government for obvious reasons. Finally, the State Administrative
Council has given practical shape to the judgment in its recent decision.
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