Dr Raja MuzaffarBhat
After a long wait the Jammu & Kashmir Bank has finally been brought under the ambit of Jammu & Kashmir Right to Information Act (J&K RTI Act 2009). RTI Movement has already hailed the decision of State Administrative Council (SAC) to the extent of bringing Jammu & Kashmir Bank within the purview of J&K Right to Information Act (RTI). We hope that J&K Bank authorities will act as a Public Authority within the meaning of said law and start providing information to the public under the act by designating Public Information Officers (PIOs) in all its business units. The decision of SAC is expected to bring transparency and accountability in the functioning of J&K Bank which until now is marred by mismanagement, nepotism and favouritism. However we have reservations about other part of the decision declaring J&K Bank as “Public Sector Undertaking” (PSU). This issue needs to be debated and discussed as the condition of Public Sector Undertakings (PSUs) in Jammu & Kashmir like SRTC, JK Cements , JK Minerals , JK Handicrafts Corporation , State Financial Corporation (SFC) etc is very pathetic as most of them have turned out to be white elephants causing severe financial liabilities on State.
Background of the case
On April 24, 2012 the full bench of Jammu & Kashmir State Information Commission (SIC) headed by the then State Chief Information Commissioner (CIC) G R Sufi in a landmark judgment had declared Jammu & Kashmir Bank (J&K Bank) a “Public Authority” and directed the bank to designate Public Information Officer (PIO) who would provide information to citizens of State intending to seek the same under State Right to Information Act (RTI) . Earlier J&K Bank had denied to provide information to several information seekers under J&K RTI Act 2009 and the reason which was cited by the bank authorities for denial of information was that J&K Bank is not a “Public Authority “. Section 2 (i) of J&K RTI Act 2009 makes it clear that RTI law is applicable to Public Authorities. The law never says RTI will only apply to Government or semi Government organizations. Section 2 (i) of the act reads “Right to Information means the right to information Accessible under the Act which is held by or under control of any Public Authority”. This clearly indicates that RTI applies to Public Authorities. We usually think that RTI Act is applicable only to the Government departments, but this is not correct . The definition of “Public Authority” as per J&K RTI Act 2009 never says that Public Authority only means Government institutions, Semi Government organizations or Public Sector Undertakings (PSU’s). Even private educational institutions and Non Government Organizations (NGO’s) can also be Public Authorities if they are substantially financed by the Government or have more than 50% shareholding of Government.
J&K Bank is a Public Authority
Under J&K RTI Act 2009 a Public Authority is defined as any authority or body or institution of self Government established or constituted:
I) By or under the constitution of India or the constitution of Jammu & Kashmir
II) By any other law made by Parliament
III) By any other law made by State legislature
IV) By notification issued or order made by the Government and includes any (A) Body owned, controlled or substantially financed (B) Non GovernmentOrganization substantially financed, directly or indirectly by funds provided the Government.
The Central RTI Act of 2005 also has the same definition vis a vis Public Authority. The J&K Bank was established by a notification/memorandum issued by the then Government of J&K headed by erstwhile Maharaja of Jammu Kashmir Hari Singh. During the case hearing before the full bench of State Information Commission (SIC) , counsel of J&K Bank admitted the fact later on the plea that after the enactment of Companies Act, 1956, the said Bank was registered as Government Company and hence it owes its existence to the Companies Act, 1956. The stand is not based on facts. The Bank would not have come into existence had the notification not been issued the Maharaja Hari Singh during late 1930’s . As the Bank came into existence because of Maharaja’s Government during 1939 in pursuance of the memorandum issued by Finance and Development Ministry of the erstwhile State of Jammu & Kashmir, it clearly indicates that the Jammu and Kashmir Bank is a body established by a notification in the form of memorandum issued by the then State Government of Jammu and Kashmir. In addition to it Jammu & Kashmir Government owns 59 % shares of J&K Bank and the bank ceases to be a corporation as on date. The Chairperson of J&K Bank is appointed / removed on the recommendation of State Government and this clearly indicates that J&K Government has a controlling power over the bank.
Delhi High Court on PSU Banks
Delhi High Court in its historical order declared that Public Sector Banks should disclose details of cases pertaining to persons and establishments whose bad debts of over Rs 100 crore have been written off. This disclosure involves an element of public interest and tax payers have a right to know the manner in which state- run banks sanctioned them, Justice Rajiv Shakdher of Delhi High Court said in his order. The court’s order came on a plea filed by the State Bank of India against order of the Central Information Commission (CIC) asking the bank to supply information to RTI applicant namely RajuVazhakkala . The applicant had sought information regarding total Non- Performing Assets (NPAs) written off between 2004 and 2013.The bank had contended that it has a fiduciary relationship with the account holders and the information should be exempted from disclosure under Section 8(1)(e) of the central RTI Act 2005. The judge brushed aside the SBI’s contention and observed that the reason “I have come to this prima facie conclusion is this: the petitioner (SBI) is undoubtedly a nationalized bank which on its own is showing written off as NPAs, its loan accounts having outstanding of Rs 100 crore or more”
Conclusion :
As the major share-holder in J&K Bank , the Government of Jammu & Kashmir has declared J&K Bank as a Public Sector Undertaking (PSU) , the bank has automatically come under RTI ambit. But without being declared as a PSU , Government could have declared the bank as a public authority and brought it under RTI ambit. I appeal Governor that he must call a meeting of all the stakeholders and review the decision on conversion of J&K into a Public Sector Undertaking (PSU). We have a very bad experience about State PSUs and this should not happen with J&K Bank as well. It is the people of J&K who have established Jammu Kashmir Bank . With the huge sum of money deposited in J&K Bank , the bank is doing business worth billions every year. If the same citizens demand information from this bank ,how could J&K Bank deny the same ? People want information about the recruitment process in J&K Bank. These recruitments are made in most non transparent manner and now it is the time to expose all the corrupt elements who looted this bank. From last 10-15 years there have been serious irregularitiesvis a vis recruitment process in JK Bank. Highly qualified boys and girls were dropped and candidates with an average academic background were selected on various jobs during last several years. There are large number of wilful defaulters of J&K Bank who remain untouched while as names of small businessmen is made public through local newspapers. A corrupt lobby of businessmen and politicians is working creating confusion among people. They are mounting a pressure on Governor Administration on declaring J&K Bank a PSU. These people have noting to do with PSU or people, they actually want RTI not be made applicable to J&K Bank, the move we will always resist.
(The author is Founder & Chairman of J&K RTI Movement)
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