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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO), National Payments Corporation of India, ITO, New Delhi
  • Section 2(45) of the Companies Act, 2013
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO), National Payments Corporation of India, ITO, New Delhi
  • Section 2(45) of the Companies Act, 2013
Smart Summary

Factual and Procedural Background

The complainant filed an RTI application dated 10.12.2016 before the Central Public Information Officer (CPIO), National Payments Corporation of India (NPCI), seeking details including the identity of the PIO and Appellate Authority under the RTI Act and publication of these details on the NPCI website. The CPIO did not respond to the RTI application. Consequently, the complainant lodged a complaint dated 07.04.2017 before the Commission alleging non-supply of information. During the hearing on 01.11.2018, the complainant admitted that NPCI was not established by the Constitution, Parliament, or Central Government notification but argued that NPCI is substantially financed and controlled indirectly by the Central Government through Public Sector Banks and regulatory oversight by the Reserve Bank of India. The complainant relied on the precedent of Central Inland Water Transport Corporation v. Brojo Nath to assert that NPCI qualifies as a public authority under the RTI Act. The hearings were adjourned multiple times due to administrative reasons and absence of the respondent, with the matter scheduled next for 13.03.2019.

Legal Issues Presented

  1. Whether the NPCI qualifies as a "public authority" under Section 2(h)(i) of the RTI Act, given its ownership, control, and financing by the Central Government or its instrumentalities.
  2. Whether the PIO is obligated to provide the requested information in the form of a certified copy.
  3. Whether penalty under Section 20 of the RTI Act should be imposed on the PIO for failure to provide information within the stipulated 30 days.

Arguments of the Parties

Complainant's Arguments

  • NPCI, though not established by the Constitution or Central Government notification, is owned, controlled, and substantially financed directly or indirectly by the Central Government through Public Sector Banks holding 67.82% of its share capital.
  • The Board of Directors includes members nominated by Public Sector Banks, and the Managing Director is appointed by the Reserve Bank of India, which also regulates NPCI under the Payment and Settlement Systems Act, 2007.
  • NPCI is considered a Government Company under Section 2(45) of the Companies Act, 2013, with audits conducted by the Comptroller and Auditor General of India (CAG).
  • The Government of India allocated Rs. 500 crores to NPCI under the Digital India scheme, and government advertisements promote NPCI’s computer applications, indicating substantial government financing.
  • Reliance on the Supreme Court decision in Central Inland Water Transport Corporation v. Brojo Nath to support that a government company is an authority and thus falls within the definition of ‘State’ under Article 12 and a public authority under the RTI Act.
  • Therefore, NPCI should be treated as a public authority and required to provide the requested information.

The opinion does not contain a detailed account of the respondent’s arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Central Inland Water Transport Corporation v. Brojo Nath, (1986) 3 SCC 156 : AIR 1986 SC 1571 Established that a government company incorporated under the Companies Act can be considered an authority and thus the ‘State’ within the meaning of Article 12 of the Constitution. The complainant relied on this precedent to argue that NPCI, being substantially financed and controlled by the Central Government, qualifies as a public authority under Section 2(h)(i) of the RTI Act.

Court's Reasoning and Analysis

The Court examined the nature of NPCI’s establishment, ownership, control, and financing. Although NPCI was not created by the Constitution or a Central Government notification, the Court noted the substantial indirect control and financing by the Central Government through Public Sector Banks and regulatory oversight by the Reserve Bank of India. The Court considered the complainant’s reliance on the precedent in Central Inland Water Transport Corporation v. Brojo Nath, which held that a government company is an authority and thus a ‘State’ under Article 12. Based on these considerations, the Court found that NPCI qualifies as a public authority under Section 2(h)(i) of the RTI Act, thereby entitling the complainant to the requested information. However, the Court emphasized that the respondent’s hearing was necessary to ascertain all facts and hence adjourned the matter for further hearing.

Holding and Implications

The Court adjourned the matter to 13.03.2019 at 03:00 PM to allow for hearing of the respondent and proper disposal of the case.

The decision establishes that entities like NPCI, though not directly constituted by law, may be considered public authorities under the RTI Act if they are substantially financed and controlled by the Central Government or its instrumentalities. This has implications for the scope of public authorities under the RTI Act but no final ruling on the reliefs sought was made at this stage. No new precedent was set by this order.

    Neeraj Sharma Complainant v. Cpio, National Payments Corporation Of India, Ito, New Delhi

    1. The issues under consideration i.e. the reliefs sought by the complainant in his complaint dated 07.04.2017 due to alleged non-supply of information vide his RTI application dated 10.12.2016, are as under :

    (i) Direct the PIO to provide the requested information in the form of certified copy.

    (ii) Impose penalty on the PIO under section 20 of the RTI Act for not providing the information within 30 days.

    2. Succinctly facts of the case are that the complainant filed an application dated 10.12.2016 under the Right to Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO), National Payments Corporation of India, ITO, New Delhi seeking inter-alia the following information:

    (a) Provide details of the PIO and the Appellate Authority under the RTI Act and also publish these details of NPCI website http://www.npci.org.in

    The CPIO did not furnish any reply to the RTI application. Aggrieved by this, the complainant filed complaint dated 07.04.2017 before this Commission.

    3. The complainant has filed complaint dated 07.04.2017 inter alia on the grounds that no information has been given by the CPIO till the date of filing of complaint to the CIC.

    4. The CPIO has not given any reply to the complainant.

    Hearing 01.11.2018

    4.1. This case of heard on 01.11.2018 and during the course of hearing the complainant admitted that the NPCI has not been established or constituted by or under the Constitution or any other law made by Parliament or by the Central Government. Further, it has not been established or constituted by notification issued or order made by the Central Government. However, NPCI is owned, controlled and substantially financed directly or indirectly by funds provided by the Central Government. The appellant further submitted that various Public Sector Banks hold 67.82% of the share capital of NPCI. Hence, NPCI is owned by the Central Government through its instrumentalities namely Public Sector Banks. The appellant also stated that the Board of Director of NPCI consist of 13 Members out of which 7 members are nominated by the PSU banks and other 6 are independent Directors. Further, the Managing Director of the Company is appointed by the Reserve Bank of India; and the NPCI is regulated by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007. Hence, NPCI is indirectly controlled by Central Government. Furthermore, the NPCI is also considered as a Government Company under Section 2(45) of the Companies Act, 2013 whereby the audit of the company has been conducted by the Comptroller and Auditors General of India (CAG). The appellant further stated the Government Page 3 of 4 of India allocated Rs. 500 crores to the NPCI in pursuance to the Scheme of Digital India and all the computer applications launched by the respondent company are advertised by the Government of India. This itself means that the NPCI is financed by the appropriate Government. The appellant also relied on the case of Central Inland Water Transport Corporation v. Brojo Nath, [(1986) 3 SCC 156 : AIR 1986 SC 1571], where the Apex Court held the Corporation, a government company incorporated under Companies Act to be an authority and so the ‘State’ within the meaning of Article 12 of the Indian Constitution. Thus, NPCI is owned, controlled or substantially financed directly or indirectly by funds provided by the Central Government. In view of this, NPCI is a public authority as per Section 2(h)(i) of the RTI Act. Hence, the information sought for should be provided to him. Due to paucity of time, the hearing in the matter could not be concluded. Therefore, the matter was adjourned to 24.12.2018 at 12.30 pm. Due to administrative reasons, the hearing was again adjourned to 21.01.2019 at 11:10 AM. The hearing posted on 21.01.2019 was once again cancelled and parties were informed that fresh date of hearing will be given in due course.

    5.1. The complainant Mr. Neeraj Sharma along with his representative Mr. Pulkit Verma attended the hearing personally. The respondent was absent.

    6. The Commission after adverting to the facts and circumstances of the case, hearing of the appellant and perusal of records, feels that without hearing the respondent, the facts of this case cannot be ascertained hence, in the interest of justice and proper disposal of this case, the Commission adjourns the matter to 13.03.2019 at 03:00 PM.

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    Comments

    Neeraj Sharma Complainant v. Cpio, National Payments Corporation Of India, Ito, New Delhi
    (Feb 19, 2019)