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CIC: Loan settlement details should be disclosed

NEW DELHI: The details of loan settlement entered by banks through a compromise with defaulting parties should be disclosed as it would help in "transparent functioning" of the public authority which is the very objective of the RTI Act, said Central Information Commission (CIC).
 
However, the State Bank of India  refused to disclose the information as the Right to Information Act contains clauses regarding commercial confidence and personal information of third parties, with whom such compromise settlements were made. 
 
RTI applicant, Kulbhushan Jain plea was rejected by bank. Jain wanted to know from the bank the information related to cases where various branches of the bank under their respective jurisdiction had compromised or settled with defaulting parties either through court or private negotiations. 
 
He had mentioned that names of third parties with whom such settlements have been made can be withheld to respect their privacy but the bank still refused to disclose the information.
 
While rejecting the banks’ arguments, Information Commissioner Deepak Sandhu said, "The Commission is of the view that the information sought is neither against the 'commercial confidence' nor 'personal information of the third party."
 
While ordering the disclosure of information, she said disclosing the loan settlement amount with the defaulting parties helps in transparent functioning and is in larger public interest.

 

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