Information about loans provided by Bank to a builder without due diligence

Information with respect to the Loan/Mortgage loan/Credit facilities sanctioned to M/s Om Sokhal Builders and Construction Pvt. Ltd including its directors, their spouses, etc. was denied by UCO Bank under section 8 (1) (e) and (j). The appellant argued that they were the buyers and there had been multiple loans on the same property by the builders, their relatives and the directors. The CIC noted that buyers, including the appellant, had booked a flat and because of the apparent malfeasance which had taken place advertently or inadvertently exhibiting lack of due diligence while financing the project as a whole or to the related parties or group industries. The appellant being buyer of one of the flats was not stranger to the subject matter. The CIC observed that the objective of the RTI is to bring transparency and accountability in the functioning of the public authorities. The whole episode had raised doubts on the propriety of the public authority i.e. bank in financing the project. It was also brought on record that there were criminal cases and civil cases pending investigation or final judicial pronouncements. The appellant has only sought information which was in the custody of the public authority and as the affected party, he has a right to the information sought. Public interest demanded that the same may be made available as sought by the appellant for bringing transparency and accountability, as the final rights and obligations will be decided by the respected courts or other authorities. The CIC directed to provide the information.

Comments

It is not uncommon to come across cases where a builder has taken suspicious loans or a bank has granted loans which are being investigated. It is the common buyer who is forced to suffer in silence.

Citation: Radhika Sharma v. UCO Bank, CIC/UCOBK/A/2022/602682, &CIC/UCOBK/A/2022/602617; 05.09.2023

Dr Anuradha Verma (dranuradhaverma@yahoo.co.in) is a RTI Consultant currently working with IIM Visakhapatnam. She has co-authored the books, RTI Right to Information - Law and Practice and PIO’s Guide to RTI. She offers consultancy on RTI matters and Third party audit. Her other articles can be read at the website of RTI Foundation of India at the link www.rtifoundationofindia.com