Can Details of Private Deals Be Disclosed Through RTI?
Can Details of Private Deals Be Disclosed Through RTI?

Can Details of Private Deals Be Disclosed Through RTI?

Many citizens wonder if they can access information about deals between private companies using the RTI Act. This case explores the boundaries of what information is accessible when private entities are involved, and whether the government holds this information in a way that can be shared with the public. Understanding these limits is crucial for any RTI applicant seeking to uncover information that might have public interest implications.

Background: What Information Was Sought

An applicant filed an RTI request with the Income Tax Department. They wanted a certificate related to the sale of wind electric generators. The information sought pertained to a transaction where one private firm sold these generators to another private firm, which then resold them to a third private firm. Essentially, the applicant wanted to verify if the initial company had claimed depreciation on these generators and if the Income Tax authorities had allowed this claim.

How the Public Authority Responded

The Public Information Officer (PIO) of the Income Tax Department denied the request. The PIO cited Section 8(1)(e) of the RTI Act, which exempts information held in a fiduciary capacity. The PIO argued that the information was held in this capacity and, therefore, could not be disclosed without satisfying that larger public interest warranted it. The First Appellate Authority (FAA) then issued notices to the two companies involved in the primary transaction to get their response. Both companies objected to the disclosure of any such information, highlighting that the matter was in the private domain and was already under dispute before a Civil Appellate Jurisdiction.

The CIC Hearing: What Happened

During the hearing before the Central Information Commission (CIC), the appellant clarified their specific interest. They weren’t just asking for the deal details but specifically wanted to know if the company had claimed depreciation and if the Income Tax authorities had permitted it. The PIO, in defense of their denial, referred to a Supreme Court decision in the case of Girish Ramchandra Deshpande. This judgment held that Income Tax Returns are considered personal information and are therefore exempt from disclosure under Section 8(1)(j) of the RTI Act. This section protects information that relates to personal information and has no connection to public activity or interest, or would cause an unwarranted invasion of privacy, unless larger public interest justifies disclosure.

The CIC Order and Its Significance

The Central Information Commission (CIC) considered the arguments presented sides. The Commission agreed with the contentions made PIO. They found that the information sought, particularly regarding depreciation claims and their allowance authorities in a transaction between private entities, fell under the ambit of personal or fiduciary information that could not be disclosed under the RTI Act. Consequently, the CIC rejected the appeal. This decision underscores that while the RTI Act aims for transparency, it respects the privacy of individuals and the confidentiality of certain information, especially when it pertains to private transactions and personal financial details held departments.

Key Lessons for RTI Applicants

  • Lesson 1: Understand Exemptions Under RTI: The RTI Act has specific exemptions (like Section 8(1)(e) and 8(1)(j)) that protect certain types of information. Information held in a fiduciary capacity or personal information unrelated to public interest is generally not disclosable.
  • Lesson 2: Private Transactions Have Limits: While government departments hold information, the RTI Act does not grant access to all information, especially when it relates to private deals between individuals or companies, unless a significant larger public interest is proven.
  • Lesson 3: Public Interest is Key for Sensitive Information: For information that might otherwise be exempt, proving that the larger public interest justifies its disclosure is crucial. However, this threshold is high and depends on the specific context.

How to File a Similar RTI Application

  1. Identify the Correct Public Authority: Determine which government department holds the information you are seeking (in this case, the Income Tax Department).
  2. Draft a Clear and Specific Application: Clearly state the information you require. Be precise about the period, the nature of the transaction, and the specific details you are looking for.
  3. Cite Relevant Sections (If Known): While not mandatory, understanding potential exemptions can help you frame your request to highlight public interest if applicable.
  4. Be Prepared for Potential Denials: Understand that information related to private entities or personal finances might be denied based on exemptions. You have the right to appeal if you believe the denial is incorrect.

Sample RTI question you can use:

“Please provide any certificate or record held department confirming the claim and allowance of depreciation on wind electric generators sold by [Private Firm A] to [Private Firm B] during the financial year [Specify Year].”

Conclusion

This case serves as a reminder that the RTI Act, while a powerful tool for transparency, operates within defined boundaries. Information concerning private deals between companies, especially when it involves personal financial claims like depreciation, is often protected from disclosure. Applicants should carefully consider the nature of the information they seek and be aware of the exemptions under the RTI Act. While the path to accessing such information might be challenging, understanding these principles empowers citizens to use the RTI Act effectively and realistically.