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Bombay HC interim stay on CIC orders to RBI on wilful defaulter list

On November 2 this year, the CIC had issued a show cause notice to Patel for "dishonouring" a Supreme Court judgement on disclosure of wilful defaulters' list

Press Trust of India  |  Mumbai 

Central Information Commission

The Friday granted interim stay on orders passed by the (CIC) directing the Reserve Bank of to submit a list of wilful loan defaulters.

A division bench of Justices B P Dharmadhikari and S V Kotwal also stayed a show cause notice issued on November 2 this year by the to former RBI for non-disclosure of the information sought and for defiance of its orders.

The RBI had petitioned the high court last month challenging orders passed by the directing it to disclose the bad debt details of defaulters worth more than Rs 10 billion at the beginning and those worth Rs 5 billion or less at a later stage.

On November 2 this year, the had issued a show cause notice to Patel for "dishonouring" a judgement on disclosure of wilful defaulters' list.

The notice was issued after the RBI failed to give the list.

The CIC had in its notice said it considers the RBI as deemed (PIO) responsible for non-disclosure and defiance of CIC orders.

The commission asked Patel to explain why maximum penalty should not be imposed on him.

On November 16, the CIC once again asked the RBI to submit the list and also the previous RBI Raghuram Rajan's letter on bad loans.

The CIC was hearing the plea of one who had sought details of

Venkatesh Dhond, appearing for RBI, told the high court Friday that the CIC order has been passed without giving a hearing to RBI.

"Information of such nature if disclosed could harm the national economy. In such situation, the CIC order and the impugned notice issued on November 2 are ex facie illegal, arbitrary and unsustainable," RBI said in its petition.

The bench, after hearing brief arguments in the case, issued notice to CIC and posted the matter for further hearing on April 10.

"Ad-interim relief sought in the petition for staying the operation, effect, finishings and other conclusions of the respondent (CIC) is granted," the court said.

First Published: Fri, December 14 2018. 15:55 IST
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