Bombay HC relief for Sebi chief in assets case

Court sets aside CIC order, sends back matter on technical grounds

The Bombay High Court has set aside a Central Information Commission (CIC) order directing the Securities and Exchange Board of India (Sebi) to declare the assets and income of its chairman, U K Sinha. In an order pronounced on Friday, the court remanded the matter to CIC.

“All contentions of both parties are kept open. The Commission shall expeditiously decide the said appeal after giving personal hearings to the parties,” said the order.

The decision followed the Sebi counsel pointing out though the CIC order (passed in November 2014) was contrary to its earlier order, no reasons were assigned as to why it was necessary to disclose this information in larger public interest and “how the reasons given by the commission in its earlier order dated November 6, 2012, were incorrect”.

In December, Sebi had moved the court after CIC reversed its earlier decision and directed Sebi to declare “(a)the assets and liabilities statement of U K Sinha, chairman, Sebi, for the past three years, or for the period declared by him; and (b) the total present emoluments, along with perquisites on which he has been employed with Sebi”.

The commission found an appeal in this regard to be a “fit case, in which the requested information should be disclosed in larger public interest”. In an order dated November 28, a CIC bench said, “We are inclined to allow the disclosure of the requested information. The respondent is directed to provide the information sought in para 2 (a) and (b) to the appellant within four weeks from the date of receipt of this order. ”

In an appeal to the court, Sebi said the petitioner required these details in relation to a public interest suit filed by a Bengaluru-based lawyer, Arun Kumar Agrawal, challenging Sinha’s appointment as Sebi chief, adding “this issue was concluded by the observations made by the apex court”.

The high court said the petitioner was also of the view that the CIC should have stated the reasons in this regard. “He, however, submitted that instead of remanding the matter back, the matter may be decided by this court,” it added.

BACK AND FORTH

• November 6, 2012
  CIC rejects appeal to direct Sebi to disclose asset details
  

 

November 28, 2014
Reverses earlier order, directs disclosure in “public interest”
 

December 2014
Sebi moves Bombay HC
 

February 13, 2015
HC sets aside CIC order; matter back before CIC