An RTI query trail is leading towards a list of big loan defaulters with the RBI.
The apex bank had prepared the list and sent it to banks for resolution, and now the Central Information Commission wants it to be made public, marking the successful pursuit of the case by Lucknow-based RTI activist Nutan Thakur,
A month ago the Supreme Court has directed the RBI to disclose information pertaining to its annual inspection report of banks and the list of wilful defaulters under Right to Information Act (RTI). The apex court also asked the RBI to review its policy to disclose information relating to banks under the RTI Act.
The CIC’s directive on Monday came on a plea by activist Thakur, who had based her RTI application on some media reports about RBI deputy governor Viral Acharya saying in a lecture in 2017 that the accounts of some loan defaulters have been sent to banks for resolution.
“The IAC (internal advisory committee) has recommended that the RBI should initially focus on stressed assets which are large, material and aged, in that they have eluded a viable resolution plan despite being classified as NPAs (non-performing assets) for a significant amount of time,” Acharya had said.
In June 2017, the RBI had identified 12 large corporate accounts that comprised about 25 per cent of the total NPAs for resolution under the Insolvency and Bankruptcy Code (IBC). The central bank had directed banks to file insolvency applications against these accounts.
According to a note from the Insolvency and Bankruptcy Board of India (IBBI), the defaulters had an outstanding claim of Rs 3.45 lakh crore against a liquidation value of Rs 73,220.23 crore. Resolution plans in respect of six such debtors have been approved and other accounts are at different stage of the process.
In her RTI application, Thakur wanted to know from the RBI the list of loan defaulters that was referred to in the lecture and the records of note sheets and correspondence regarding these accounts.
The RBI had refused to provide the details to her by calling them ”confidential information”, following which she approached the CIC.
“The CPIO (chief public information officer) denied the information under section 8 (1) (d) (commercial confidence) of RTI Act whereas the first appellate authority held that the exemption under section 8 (1) (d) does not apply to the case and but falls under Section 45C and E of the RBI Act as per which the credit information submitted by all banks shall be treated confidential,” PTI quoting Information Commissioner Suresh Chandra said.
The Right to Information provides a two-stage dispute resolution process. In the process, a CPIO receives and responds to the application. His decision to deny or provide partial information is first challenged before a senior officer within the organisation called the first appellate authority.
If the applicant is still unsatisfied, a second appeal can be filed before the CIC.
The RBI at the CIC hearing this month said they can provide the information now but were in no position to do so when the RTI application was filed more than 20 months ago on September 16, 2017.
It could not disclose the list because of pending resolution. Besides the defaulter list had not been finalised.
During the hearing before the commission this month, the RBI had said on September 16, 2017, the date of filing of the RTI application,
the information was not provided due to pending resolution and the list of defaulters had not been finalised, but now they can provide the information.
On the issue of note sheets and correspondence, the central bank said it not only pertains to the list of willful defaulters but also the borrowers suffering economic distress.
Published On : 28-05-2019
Source : Telegraph India
