More reports on: Banks general

Finance ministry says it has no records of Mallya's loans, CIC looks elsewhere

news
07 February 2018

Chief Information Commissioner RK Mathur told the finance ministry that the Right to Information (RTI) application filed by one Rajiv Kumar Khare should be transferred to the proper public authority.

The Central Information Commission has sought the transfer of a Right to Information (RTI) application seeking details of bank loans given to fugitive liquor baron Vijay Mallya after the finance ministry said it has no records of Vijay Mallya's loans.

The CIC said the finance ministry's response was "vague and not sustainable as per law", and asked the finance ministry to transfer the RTI application filed by one Rajiv Kumar Khare to the proper public authority.

The finance ministry official may have claimed that the ministry does not have information on the loans sanctioned by different banks to Mallya or the details of the guarantee given by Mallya against those loans, but the ministry had responded to questions in this regard in Parliament in the past.

Responding to a question on Mallya on 17 March 2017, union minister of state for finance Santosh Gangwar stated that the person, whose name was mentioned (Mallya), was given a loan in September 2004 and that it was reviewed in February 2008.

The Rs8,040 crore loan was declared a non-performing asset (NPA) in 2009 and the NPA was restructured in 2010, he had said.

"As reported by PSBs, an amount of Rs155 crore has been recovered by conducting a mega online auction by selling from the seized properties from defaulting loan borrower Vijay Mallya," Gangwar had told the Rajya Sabha on 21 March last year.

During a debate on demonetisation in the Upper House on 17 November 2016, finance minister Arun Jaitley had termed the loan issue of Mallya a "terrible legacy" that the NDA government had inherited from the previous UPA regime.

However, as Khare failed to get a response from the finance ministry to his RTI application, seeking details of Mallya's loans, he had approached the CIC.

The term "information" under the RTI Act means any record which is held by or under the control of a public authority.

Khare was initially told by the ministry that the information on Mallya's loans could not be given because of the exemption clauses in the RTI Act related to personal safety and prejudicial effect on the economic interest of the State.

"The respondent (the finance ministry official) further stated that the said information was not available with the ministry.

He stated that the information sought by the appellant might be available with the banks concerned or Reserve Bank of India," the chief information commissioner noted.

He directed the ministry to transfer the application to the public authority that held the information.





 search domain-b
  go