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  • provisions of section 8(1)(d) of the RTI Act, 2005
  • exempt u/s 8(1)(d) of the RTI Act, 2005
  • section 8(1)(d)
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Citation Codes
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citation codes
Case Number
Attorney(S)
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  • provisions of section 8(1)(d) of the RTI Act, 2005
  • exempt u/s 8(1)(d) of the RTI Act, 2005
  • section 8(1)(d)
Smart Summary

Factual and Procedural Background

Shri Aditya Pratap submitted an RTI application on 29 October 2014 seeking details of investments made by LIC in four companies. [1]

The CPIO denied disclosure under section 8(1)(d) of the RTI Act, 2005, citing commercial confidence and potential harm to business interests. The First Appellate Authority upheld that decision, following which the appellant filed an appeal before the Commission. [2]

The Commission heard the matter; the appellant was absent despite notice. [3]

Legal Issues Presented

  1. Whether details of LIC’s investments in the four named companies were exempt from disclosure under section 8(1)(d) of the RTI Act, 2005. [2][4]
  2. Whether disclosure was required in the larger public interest despite the claimed commercial-confidence exemption. [2][4]

Arguments of the Parties

Appellant's Arguments

  • The information related to LIC’s statutory functions and therefore should be disclosed. [2]
  • There were alleged irregularities in LIC’s investments, and investment-related matters should remain within public knowledge. [2]
  • The appellant relied on the CIC decision in Sham Lal Yadav vs LIC. [4]

Respondents' Arguments

  • LIC already made extensive disclosures on its website pursuant to IRDAI guidelines, although company-wise equity investment details were not disclosed. [3]
  • The appellant appeared to rely on a newspaper report and had made unsubstantiated allegations concerning LIC’s investments. [3]
  • LIC’s investments were governed by the IRDA (Investment Regulation, 2000), LIC’s investment committee guidelines, the LIC Act, 1956, and audit mechanisms. [3]
  • Disclosure of equity investments in individual companies could adversely affect the share market and the economic interests of the State. [3]

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sham Lal Yadav vs LIC, CIC/DS/A/2012/002276, dated 22.8.2013 Disclosure in percentage terms of total investments, rather than specific company-wise investment details. The Commission distinguished the case because the present appellant sought detailed investments in four specifically named companies, which was considered commercially important and potentially harmful to LIC and third-party interests. [4]
ND Dujari vs LIC, CIC/DS/A/2012/002760, dated 11.10.2013 LIC’s portfolio management is a commercial activity governed by IRDA rules. The Commission relied on this principle to conclude that further disclosure would encroach upon commercial confidence protected by section 8(1)(d). [4]

Court's Reasoning and Analysis

The Commission accepted the FAA’s conclusion that the requested information involved commercial confidence and was exempt under section 8(1)(d) of the RTI Act, 2005. [4]

It distinguished the disclosure ordered in Sham Lal Yadav vs LIC, observing that the earlier case concerned aggregate, percentage-based information, whereas the present request targeted investments in four named companies. Such specific information was considered commercially important and capable of affecting LIC’s and third-party interests. [4]

Relying on ND Dujari vs LIC, the Commission treated LIC’s portfolio management as a commercial activity governed by IRDA rules. It further held that additional disclosure would encroach upon commercial confidence and was not justified in the larger public interest. [4]

Holding and Implications

DISPOSED OF: The Commission upheld the FAA’s decision refusing disclosure under section 8(1)(d) of the RTI Act, 2005. [5]

The requested company-specific investment information was not required to be disclosed, and the appeal was disposed of. The opinion identifies no broader implication or new precedent beyond applying the commercial-confidence exemption to the requested information. [4][5]

    Shri Aditya Pratap, Mumbai v. Life Insurance Corporation Of India, Mumbai Public Authority.

    1. The appellant, Shri Aditya Pratap, vide RTI application dated 29.10.2014 sought for information regarding details of all investments made by LIC in Gitanjali Gems Limited(BSE: Gitanjali NSE: Gitanjali), Core Education & Technologies Ltd, KIRI Industries and Rainbow Papers till today.

    2. The CPIO, vide letter dated 26.11.2014, intimated that information sought involved commercial confidence, the disclosure of which would harm the business interests of the public authority. It was, therefore, exempt from disclosure under section 8(1)(d) of the RTI Act,2005. Aggrieved by the aforesaid denial of information, the appellant filed an appeal before the appellate authority (FAA) on 24.12.2014 while stating that information must be provided as the same pertains to statutory functions. There were numerous irregularities in the manner in which investments were made by LIC in these companies and all matters pertaining to investment have to be kept within public knowledge. The FAA vide order dated 20.1.2015 upheld the CPIO reply. Thereafter, dissatisfied with the decision of the respondents, the appellant filed the instant appeal before the Commission on 23.04.2015 by reiterating the grounds of first appeal.

    3. The matter was heard by the Commission. The appellant was not present in spite of a notice of hearing having been sent to him. The respondents stated that the appellant had asked for details of all investments made by the LIC in four companies and had mentioned that he had sought the information in larger public interest. They stated that the insurance regulator, IRDAI, had issued guidelines for public disclosure and LIC already has 42 kinds of disclosures on its website. The disclosures made on the website contain, inter alia, LIC investments, income, premium, business, etc. but the company wise disclosure of equity investment is not put on website. The appellant was going by a newspaper report about Geetanjali Gems and sought information on that and appeared to be making unsubstantiated allegations stating that there were numerous irregularities in the manner the investments were made by the LIC in the company. They added that the LICs annual report is tabled in the Parliament and is also available on their website. The LIC carries out investment functions as per IRDA (Investment Regulation, 2000) within the guidelines of their investment committee formed by the Board of LIC and in accordance with the LIC Act, 1956. One of the Board members is the nominee of the Government of India. Besides, there is a system of concurrent audit and statutory audit as per IRDA guidelines. The respondents further added that any disclosure of equity investments in individual companies may have an undesirable impact on the share market and may adversely impact the economic interest of the state.

    4. The appellant had quoted from the CIC decision in appeal no. CIC/DS/A/2012/002276 dated 22.8.2013. The Commission observes that the FAA had appropriately responded to the RTI application holding the information sought as exempt u/s 8(1)(d) of the RTI Act, 2005 as it clearly involves commercial confidence while quoting parts of the same decision (no. CIC/DS/A/ 2012/002276 - Sham Lal Yadav vs LIC, Mumbai) where the CIC had ordered to provide information in percentage terms of total investments made by the corporation in terms of PSUs, private banks, public sector banks and other companies and to disclose if it is held by them. In the instant case, the appellant has sought details of investments specifically in four companies named by him. Such information is of commercial importance to the corporation and disclosure can impact the corporations and the third parties interests. Again in appeal no CIC/DS/A/2012/002760 (ND Dujari vs LIC dated 11.10.2013) CIC has observed that Portfolio management is a commercial activity of the LIC of India which is governed by IRDA rules within which the investment managers of the corporation are bound to operate while taking investment decisions pertaining to public funds. In our view, any further disclosure in the matter of investment will amount to encroaching on matters of commercial confidence as per the nondisclosure provisions of section 8(1)(d) of the RTI Act, 2005 and will not be in larger public interest.

    5. In view of the above, the Commission upholds the decision of the FAA. The appeal is disposed of. (Manjula Prasher) Information Commissioner Authenticated true copy: (T.K. Mohapatra) Dy Secretary & Dy Registrar Tele No. 011-26105027 Copy to : The Central Public Information Officer The First Appellate Authority Life Insurance Corporation of India Life Insurance Corporation of India Central Office, Yogakeshema Central Office, Yogakeshema Jeevan Bima Marg, Mumbai-400021 Jeevan Bima Marg, Mumbai-400021 Shri Aditya Pratap 105, Vankatesh Chambers Prescott Road, Above IDBI Bank Opp: Cathedral Middle School, Fort Mumbai-400001

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    Shri Aditya Pratap, Mumbai v. Life Insurance Corporation Of India, Mumbai Public Authority.
    (Mar 18, 2016)