“Central Information Commission Upholds SBI’s Denial to Disclose Details of Due Diligence in Loan Sanctioning, Cites Fiduciary Relationship”
The Central Information Commission (CIC) today upheld the decision of the Central Public Information Officer (CPIO) of the State Bank of India, refusing to disclose details regarding who carried out due diligence in sanctioning a loan to M/s Priyadarshi Motors Pvt Ltd. The CIC, presided over by Information Commissioner Saroj Punhani, cited the fiduciary relationship as the primary ground for denying access to the said information.
In the landmark decision, the Commission observed, “The CPIO has appropriately denied the personal details who carried out due diligence of the above-said property for sanctioning of loan to M/s Priyadarshi Motors Pvt Ltd, which not only contains the elements of personal information of third party which stands exempted from disclosure under Section 8(1)(j) of RTI Act but also held/available in the bank under fiduciary capacity and thus, attracted exemption clause of Section 8(1)(e) of RTI Act.”
The Appellant, Rahul Kumar Singh, had approached the CIC after being dissatisfied with the responses of the CPIO and the First Appellate Authority (FAA). He argued that the denial of information led him to suffer financial losses as the property in question was leased by him to the firm M/s Priyadarshi Motors Pvt Ltd.
The Commission’s decision also referenced previous judgments of the Supreme Court, underlining the fiduciary relationship between the bank and its client. It drew attention to the clause of Section 8(1)(g) of the RTI Act which states that disclosing information could “endanger the life or physical safety of any person.”
Today’s ruling sets a precedent in matters of disclosing sensitive financial and personal information under the RTI Act and reiterates the protective boundaries laid down by law.
Date of Decision: 31/08/2023
RAHUL KUMAR SINGH vs State Bank Of India
