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Thread: Subsidiary of public authority comes under RTI Act: CIC

  1. #1
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    Subsidiary of public authority comes under RTI Act: CIC


    Subsidiary of public authority comes under RTI Act: CIC


    By IE
    Thursday July 26, 02:46 AM

    The CIC has held that any subsidiary company of a public authority will be deemed to be a public authority for the purposes of the RTI Act.


    Information Commissioner Padma Balasubramanian in her order said that even if a subsidiary of a public authority is registered as a private company, it will come under the purview of the RTI Act and is obliged to provide information and appoint information officers according to the provisions of the Act.

    Appellant Sammy Traders had sought information relating to its account with State Bank of India, Commercial & International Bank Ltd. The bank refused to provide the information saying that since the RBI had categorised it as a private-sector bank, it was not a public authority governed by the provisions of the RTI Act.

    Even though the bank is a wholly owned subsidiary of the SBI, it is registered under the Companies Act and has been given licence for banking by the RBI as a private bank, and is not directly or indirectly financed by any government.

    Rejecting these contentions, the CIC said the admitted fact was that the bank was a wholly owned subsidiary of SBI, which is a public authority.
    "Since the bank is a wholly owned subsidiary of a public authority, even if it is registered under the Companies Act and treated as a private sector bank by the RBI, the provisions of the RTI Act will apply," the CIC ruled.
    Holding that the nature of funding of any subsidiary of a public authority is inconsequential, the order stated that the provisions of the RTI Act were applicable, irrespective of whether the bank was substantially funded by any government, Central or state.

    Subsidiary of public authority comes under RTI Act: CIC - Yahoo! India News


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  2. #2
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    Re: Subsidiary of public authority comes under RTI Act: CIC


    Can you kindly attach the decision so that I transfer it to appeals and decisions forum.

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    Re: Subsidiary of public authority comes under RTI Act: CIC


    I am sure karira would not mind my interference. The following is the link to that decision:

    Decision No. 722/ICPB/2007 dated 24/07/2007 on Appeal from Sammy Traders Vs SBI, Commercial & International Bank Ltd.

  4. #4
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    Re: Subsidiary of public authority comes under RTI Act: CIC



    moved to Appeals and Decisions forum and the decision included for reference.
    Attached Files Attached Files

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