Panel pulls up IFCI for dodging RTI Act

When a Mumbai-based lawyer filed a request with the Industrial Finance Corporation of India (IFCI) under the Right to Information (RTI) Act, a response wasn't forthcoming.

Industrial Finance Corporation of India produced a certificate from the government that said it wasn't a ‘public body'. Therefore, the company argued, it was outside the purview of the RTI and did not have to respond to the request.

But he persisted and went to Sebi, the stock exchange regulator. Because Sebi is a public body that comes under the RTI's canvas, it could be approached for information on another company controlled by it.

Having done that, he also went to the Central Information Commission (CIC) challenging the validity of the certificate issued by the government. In a recent ruling, the CIC pulled by IFCI, declared the certificate it held ‘invalid' and urged government departments and ministries to refrain from issuing such certificates. "Whether an entity is a public authority or not is to be determined only under the RTI Act," it ruled.

In July 1996, IFCI had made a public issue of five types of bonds. It collected about Rs 1,237 crore, including a green-shoe option from the bond issue. In 2003, IFCI decided to exercise its call option and asked bond holders to submit the bonds by a specified date.