IFCI comes within ambit of RTI Act: HC

The Delhi High Court today held that Industrial Finance Corporation of India Ltd (IFCI) is a public authority under the RTI Act making it mandatory to disclose information under the transparency law.

Justice S Muralidhar dismissed the plea of the financial institution that it did not come under the purview of the RTI Act.

Upholding the order of the Central Information Commission which had directed it to put in place a mechanism for disclosure of information under the Act, the court said the Corporation comes within the ambit of the transparency law as it is controlled and substantially financed by the Centre.

"There is both control and substantial financing of the IFCI  by the central government and therefore answers the description of a public authority under Section 2(h)(d)(i) of the RTI Act," the court said.

The court said the basic character of the company would remain public irrespective of the holding of government share in it as IFCI is very different from any other company registered under the Companies Act.

"This Court held that even though the central government subsequently ceased to hold shares in IFCI Ltd., its essential character as a public financial institution would remain," the court said.

The CIC had on May 31, 2007, had declared IFCI as a public authority on a complaint filed by a person after the company refused to reveal information under the RTI Act.

The IFCI was established as a statutory Corporation in 1948 by the enactment of the Industrial Financial Corporation of India Act, 1948. It was the first developmental financial institution set up by an Act of Parliament to pioneer institutional credit to medium and large scale industries.