Ghost of GAAR buried: Chidambaram

Last week, Chidambaram had announced that implementation of GAAR, which would have given unbridled powers to taxmen to check evasion of taxes by foreign investors, has been postponed to 2016

Hong Kong: India has buried the ‘ghost’ of general anti-avoidance rules (GAAR), Finance minister P Chidambaram said on Tuesday asserting that there is no threat of a rating downgrade in view of key economic decisions like allowing foreign direct investment (FDI) in multi-brand retail and hiking fuel prices, reports PTI.


He said there is revival of investor interest in India as a result of a number of measures taken by the government since September.


Chidambaram was also hopeful that fiscal deficit will be contained within the targeted 5.3% of the GDP this fiscal and trimmed to 4.8% in the next. Growth is likely to climb to 6%-7% from 5.7% expected in the current year, he said.


“There is a universal acknowledgement that we have handled the GAAR situation fairly effectively and buried the ghost that GAAR will be some kind of a monster,” he told PTI in an interview.


Here on a day’s visit for an investor conference, the finance minister said as expected investors raised issues relating to the controversial provision of GAAR that was introduced in the 2012-13 Budget by his predecessor.


The GAAR gave unbridled powers to taxmen to check evasion of taxes by foreign investors that created huge apprehensions among investors.


Last week, Chidambaram announced that GAAR implementation has been postponed by two years to 2016.


“On specific questions on GAAR and I took some time in explaining all the measures we have made to GAAR and told them how market has received it very well here. There is universal acknowledgement that we have handled the GAAR situation fairly effectively and buried the ghost that GAAR will be some kind of a monster,” he said.


Kicking off his campaign to woo investment, Chidambaram met over 200 top investors at the “India for Investment Conference” organised by the Citibank and BNP Paribas.


He made a strong case for their investment assuring that all their concerns were being addressed and that the government has taken all measures including to contain the fiscal deficit.


“It is a very well attended meeting. Virtually everybody who is anybody in the financial sector was here including wealth funds, sovereign funds, banks asset management companies. It gave me an opportunity to explain the economic situation in India, the steps we are taking to put the economy on high growth path,” he said.


Chidambaram, who will be in Singapore tomorrow on a similar mission, said India continues to post growth even now.


“We are undeniably growing faster,” he said pointing that out only China and Indonesia are ahead of India.


“But this growth is not sufficient for us. We need to accelerate it. So I told them steps we are taking to accelerate growth,” he said.


He said the first step in that direction is fiscal consolidation and commitment to the path of fiscal prudence.


“At that at the end of this year, we will achieve the target of 5.3% of fiscal deficit and next year I will budget for fiscal deficit no more than 4.8%,” he said.


He said he has also explained to the international investors the number of measures taken in this regard.


“I thought it was a fruitful conference. I could get a sense of the concerns of investors. Happily many of the concerns were addressed in the last three of four months,” he said.


Chidambaram said the investors were concerned about the rating down grade.


“I think the steps we have taken assured everybody that there will not be a rating down grade. They were concerned about our ability to stay the course after we announced the decisions. They are happy we stayed the course after announcing FDI in multi brand retails,” he said.


He said the investors and rating agencies were concerned that we will not correct fuel prices. “But even the small steps we have taken has given them confidence that we will correct the fuel prices. I think each of the measures has boosted their confidence in the Indian economy,” he said.


While the government had in September last capped the supply of subsidised cooking gas and raised the price of petrol and diesel steeply, last week it had virtually begun the process of deregulation of diesel price.


On GDP growth projections, he said “projections I have received is that economy will grow above six percent (in 2013). My own assessment is it will be between 6% and 7%. Will be happy if it is closer to 7% percent but we should be happy if it is 6% to 7% “.


On revival of investor interest, he said, “People are coming to us for inquiries, approaching banks. There is a clear revival. I am not saying there is investment taking place but there is a revival of interest”.


“There is revival of confidence that we will stick to our promises to contain the fiscal deficit and lowering it by 0.6% every year by the next five years,” he said.


The confidence is showing up even in the bottom rung of many companies. This quarter results of many companies are encouraging in some sectors demand for goods quite high. This means people are willing to buy more, he said.


“Next year we should see 6% and 7%. If investment gathers pace, year after we should get back to our growth rate of 8%. India's potential growth rate is above eight percent above. We have done it before. We will do it again,” he added.




4 years ago

Are we a free ans sovereign nation?

Annual confidential reports of all IAS officers gutted in Mantralaya fire

The annual appraisal reports of all IAS officers in Maharashtra are lost in the Mantralaya fire, claims the state government in an RTI reply

In an RTI (Right to Information) response to former Central Information Commissioner Shailesh Gandhi, the Maharashtra government has said that annual confidential reports (ACRs) of all 280 IAS, IPS officers were gutted in the Mantralaya inferno on 21st June last year.


“The fire on 21 June 2012 gutted the General Administration Department’s (GAD) office number 10, which had all original annual confidential reports and confidential reports of officers from the Indian Administrative Service (IAS). Therefore, we cannot provide the information sought by you for past two and more years,” the Public Information Officer (PIO) of GAD stated in his reply.


At present there are 280 IAS officers working in Maharashtra, out of which the government has initiated the performance appraisal for 259 officers. The assessment report of the rest 21 IAS officers is also being prepared, the PIO informed.


The PIO also clarified that since 27 IAS officers are working on a deputation out of the state, it cannot provide their appraisal reports.


Maharashtra chief minister Prithviraj Chavan had told reporters that 2.25 lakh files had been digitalised and 3.18 crore papers had been scanned prior to the incident. This means the rest about 4.82 crore pages were not digitised and were susceptible. 


Mr Gandhi, sought information about the receipt of annual confidential reports of IAS officers in the state, for each of the last two years in the following format…


Total Number of IAS officers

Number of officers for whom ACRs/APRs have been received for the relevant year

Number of officers for whom ACRs/APRs have been not received for the relevant year

Number of officers for whom ACRs/APRs have not been received for two earlier  years

Number of officers for whom ACRs /APRs have not been received for three earlier years and more












Here is the reply given by the PIO (in Marathi)...






4 years ago

Modern offices are designed to work with less paper and fire hazards are created by accumulating old records and papers which are expected to be weeded out and destroyed at reasonable intervals. I remember a news report about former FM getting a huge quantity of 'Xerox' copies of agena/notes etc of all meetings he attended, just before he vacated office to become President.That prompted me to send this piece to Reader's Digest. I am not aware whether they published it!
All in a day’s work

Shredding machines and back-up files

“Shredders in North Block get busy as FM set to leave: For the last two days, the paper guzzlers have been working overtime in FM’s Office. In fact the scale at which papers are being destroyed has even prompted the 50-man strong ministerial staff- who work in two shifts-to borrow shredding machines from across the ministry. One explanation for the humongous pile of papers is the fact that Pranab Mukherjee presides over multiple GoMS (Groups of Ministers)-ranging from 2G spectrum to food and oil. These papers, which are usually photocopied to ensure that there are back-ups, would not be required in Rashtrapati Bhavan.”(Report in media on June 21, 2012).
This reminds me of one incident in the office I worked in late 1960’s. The officer-in-Charge visited the record room one day and found that there was no room for keeping new records as old records had not been weeded out and destroyed. He gave on-the-spot instructions to attend to destruction of obsolete files and keep only important old files and recent records which are not due for destruction in the record room. Within a week, a note was submitted to him for passing orders for destruction of a large number of files and documents which satisfied the norms for destruction. His orders on the file read something like this:
“Destroy all the files listed for destruction. Some files have become too old and clumsy to handle. Now that we have acquired a new Xerox machine which is fast and efficient, please keep copies of all the files being destroyed.”
Hopefully, North Block would have now taken advantage of the new technology available and preserved images of all the ‘back-up files’ on electronic chips before shredding!
M G Warrier, Mumbai

Shadi Katyal

4 years ago

One doesnot hear any fires in oither nations but in India in this age of digital recording.
Nice way to desgtrioy records. This is the way India

nagesh kini

4 years ago

I had thought the Mantralaya fire devoured only Adarsh files!
More skeletons are sure to pop up!

Ramesh Iyer

4 years ago

Seems GAD of Govt of Maharashtra hasn't heard of scanners !! Moreover, officers of All India Services like IAS, IPS, & IFS are governed by Central Govt enacted rules, so guess a copy must be there with the UPSC or the Dept of Personnel under PMO currently.



In Reply to Ramesh Iyer 4 years ago

The reply quoted in he article is a typical 'RTI-specific' response.In all probability, as you(Ramesh Iyer) rightly presumed, earlier records will be with other offices and essential records must have been re-constructed or may be in the process of restoration, as these form the basis for deciding posting/promotion and so on. This is possibly an easy diversion taken by the government.

RTI Judgement Series: All Cabinet Notes regarding tabling of bills must be displayed

The Commission ordered that all Cabinet Notes regarding tabling of bills must be displayed on the website in fulfilment of the requirements of Section 4(1) (d) of the RTI Act. This is the 24th in a series of important judgements given by Shailesh Gandhi, former CIC, that can be used or quoted in an RTI application

The Central Information Commission (CIC) while rejecting the exemption under Section 8(1)(i) of the Right to Information (RTI) ordered that all Cabinet Notes regarding tabling of Bills must be displayed on the website in fulfilment of the requirements of Section 4 (1)(d) of the RTI Act. While giving this important judgement, Shailesh Gandhi, former Central Information Commissioner, said, “Citizens are certainly deeply affected by every law made by Parliament, and hence have a right to know the basis on which these laws are being made.”


“The Secretary, Department of Atomic Energy (DAE) is directed to ensure that the Cabinet Note mentioned above is displayed on the website of the Department before 20 July 2012 and all Cabinet Notes relating to proposals for new bills to be tabled in the Parliament should also be displayed on the website of the Department within seven days of tabling the bill in the Parliament,” the CIC said in its order issued on 26 June 2012.


Venkatesh Nayak, a resident of Delhi on 20 January 2012 sought information about a Cabinet Note regarding the Nuclear Safety Regulatory Authority Bill, 2011. Here is the information he sought:


1. A clear photocopy of the Cabinet Note prepared by your department seeking approval of the Union Cabinet for introducing The Nuclear Safety Regulatory Authority (NSRA) Bill, 2011, in the Lok Sabha along with all annexures. This Bill was introduced in the Lok Sabha on 7 September 2011;

2. The total number of records and live files held by the DAE Secretariat and its units that have been assigned the security classification: “top secret”, 'secret' and confidential' as on the date of this application. I wish to clarify that (would like to know) only the total number of records and files marked with each type of security classification mentioned above but not the total number of pages in each file. I also wish to clarity that I do not want information about any public sector undertaking or aided institution under CM;

3.The subject matter or topic of each record and live file that has been assigned the security classification “top secret”, 'secret' and confidential' as on the date of this application; and

4. A clear photocopy of the information submitted by DAE to the Central Information Commission under Section 25(3) of the RTI Act for the period: 1 April 2010-31 March 2011


The Public Information Officer (PIO) forwarded the query 1 to PIO of ER Section, DAE.

He said...

Point No.1: A copy of the RTI application is being forwarded to PIO/OSD(ER) for furnishing a reply to you as the subject matter is dealt by ER Section, DAE.

2. Point No.2 The information requested for is not available as no records are kept regarding the total number of such files centrally.

3. Point No.3 The information requested are exempted from disclosure under Section

8(a) of the RTI Act, 2005.

4. An extract of Annual return for the year 2010-Il submitted by DAE to CIC under Section 25(3) of the RTI Act is enclosed


The PIO of ER Section, DAE, while refusing to disclose the information claimed exemption under Section 8(1)(i) of the RTI Act.


Not satisfied with the reply, Mr Nayak then filed an appeal with the First Appellate Authority (FAA). The FAA in his order said, “...the use of the word ‘and’ appearing in Section 8(1)(i) between ‘after the decision has been taken’ and 'the matter is complete or over’ implies that both the conditions, i.e. (i) the decision has been taken; and (ii) the matter is complete or over, must be satisfied for disclosure of full information.”


The Department-related Parliamentary Standing Committee on Science & Technology, Environment & Forests had put the contents of the Bill in the public domain and invited comments on it. As is public knowledge, the Committee has deliberated on the report and forwarded its observations to the Chairman of Rajya Sabha and Speaker of the Lok Sabha.


“Thus, the matter stands and has to be taken forward, and the second condition i.e. ‘the matter is complete or over’ is not satisfied in this case. In view of the above, the information sought does not qualify for disclosure at this stage...” the FAA said.


Mr Nayak then approached the Commission with the second appeal. He said, “It is undisputed that the information relating to the Nuclear Safety Regulatory Authority Bill sought by me is in the nature of a Cabinet Note. However CPIO#1 has failed to appreciate the holistic position of the exemption provision that he has sought to invoke.”


“Upon securing the approval of the Union Cabinet, the minister of state for public grievances and pensions tabled the said bill in the Lok Sabha in September 2011. So the purpose of the Cabinet Note was completed upon securing Cabinet approval and the subsequent tabling of the said Bill in Parliament. The contents of the Cabinet Note now qualify for disclosure under the proviso to Section 8(1)(i) as the matter is over. The passage of the Bill is dependent upon the will of both Houses of Parliament and the Union Cabinet cannot undertake to get the Bill passed. Therefore the limited purpose of the Cabinet Note attached to the said Bill may be treated as over. However CPIO #1 has not appreciated this fact. Instead, he has mechanically invoked Section 8(1)(i) without paying any attention to the proviso underlying it, which entitles me to receive the said information,” Mr Nayak said in his appeal.


During the first hearing on 18 May 2012, the PIO was not present at the Mumbai NIC studio. When the Commission called up the Joint Secretary, he stated that he had not received the notice for hearing. The matter was then adjourned and a fresh notice was issued.


During the second hearing on 25 June 2012, both the parties agreed that that the Cabinet Note has been put up to the Cabinet, and after due approval a bill has been presented to the Parliament. While the PIO claimed that the matter is not complete and over until the Bill is enacted, duly gazetted, and a notification is issued that the bill comes into force, Mr Nayak contended that rather than nearly invoking 8 (1)(i) mechanically the PIO has a duty and a burden to demonstrate what interests are sought to be protected by the secrecy of Cabinet papers at this stage of the bill, which will outweigh the disclosure in public interest.


When asked by the Commission, if he can explain the harm which may accrue to the protected interest if the information is disclosed, the PIO stated that since the Bill has not been enacted, revealing the Cabinet Note may be inappropriate and should not be revealed.


Mr Nayak contended that the NSRA Bill has proposed amendments to the RTI Act while the Department of Personnel & Training (DoPT) has told the Parliament that no amendments are proposed to the RTI Act and therefore he needs to know the contents of the Cabinet Note to ensure that no amendments are made to the RTI Act without widespread consultation.


The PIO stated that the Bill was already in the public domain and therefore he was not able to appreciate the appellant’s contention. The Commission then reserved its order.


The Commission noted that the PIO has claimed exemption under Section 8 (1)(i) of the RTI Act whereas the appellant has stated that the Cabinet Note sought by him is not covered by the said exemption.  The RTI Act has codified the fundamental Right to Information of Citizens guaranteed under Article 19 of the Constitution.


As per Section 3 of the Act, “Subject to the provisions of this Act, all citizens shall have the right to information. The provisions of the Act by which any information may be denied to a Citizen is defined in ten exemptions of Section 8 (1) of the Act. Section 8 (2) of the Act, which states, ‘Notwithstanding anything in the Official Secrets Act, 1923 nor any of the exemptions permissible in accordance with sub-section (1), a public authority may allow access to information, if public interests in disclosure outweighs the harm to the protected interests’ would override the exemptions of Section 8 (1) if a larger public interest in disclosure is shown.


Section 8 (1) (i) under which the PIO has claimed exemption and that has been upheld by the FAA exempts, "cabinet papers including records of deliberations of the council of ministers, secretaries and other officers:                                             


Provided that the decisions of Council of Ministers, the reasons thereof, and the material on the basis of which the decisions were taken shall be made public after the decision has been taken, and the matter is complete, or over:

Provided further that those matters which come under the exemptions specified in this section shall not be disclosed;"


Mr Gandhi, the CIC, said the Commission agrees with the FAA’s contention that the use of the word ‘and’ appearing in Section 8(1)(i) between ‘after the decision has been taken’ and ‘the matter is complete or over’ implies that both the conditions, i.e. (i) the decision has been taken; and (ii) the matter is complete or over, must be satisfied for disclosure of full information.


“If the decision has been taken and the matter is complete or over, the exemption under Section 8(1)(i) would not be available. If the decision has not been taken or the matter is not complete or over the information would be exempt. The PIO has argued that this means that the purpose for which the Cabinet Note was made—passing of the proposed Act—should be over. If such an interpretation were to be given it would mean that if an Act for which the Cabinet Note was made is either not passed by Parliament, or not Gazetted, or not Notified, such a Cabinet note would never be disclosed under the RTI Act,” it noted.


Mr Gandhi said it may be worthwhile to glimpse the mind of the Parliament when passing the RTI Act to understand the frame of mind of the elected representatives.


In Parliament when the RTI Bill was debated, Varkala Radhakrishnan, MP said, “Even Cabinet papers, after a decision has been taken, must be divulged as per the provisions of this amendment. It cannot be hidden from the knowledge of others. It must be divulged. But before taking a final decision, the Cabinet papers can be kept secret.”


“Thus it is clear that the intention to prevent disclosure was only until the time that the decision was taken by Cabinet on the Cabinet Papers/Notes. Once the Cabinet decision has been taken, the first part of the proviso that the decision had been taken would be fulfilled. With the tabling of the bill in Parliament the second part of the Proviso that the matter is complete or over would also have been met,” the Commission said.


The Commission ruled that the Cabinet Note is material on the basis of which a Cabinet decision is taken to table a bill in Parliament. “Once the decision is taken by the Cabinet to table the bill in Parliament the ‘decision has been taken'’ when the bill is tabled in Parliament ‘the matter is complete or over’ as far as the Cabinet is concerned. In the instant case, since the ‘the decision has been taken, and the matter is complete, or over:’ the exemption claimed under Section 8 (1) (i) of the RTI Act by the PIO is not upheld,” it said.


The Commission then directed the PIO to provide an attested photocopy of the Cabinet Note along with all the annexures in query-01 before 20 July 2012. The Commission in exercise of its powers under Section 19 (8) (a) (iii) of the RTI Act, also directed the Secretary, DAE to display this Cabinet Note and all Cabinet notes in future on the department's website where such Cabinet notes relate to proposing a new bill to be tabled in Parliament, within seven days of the bill being tabled in Parliament.




Decision No. CIC/SG/A/2012/001023/19365

Appeal No. CIC/SG/A/2012/001023


Appellant                                            : Venkatesh Nayak

                                                          New Delhi- 110017


Respondent                                                 : A Anandraju,

                                                            PIO & OSD(ER)

                                                          Department of Atomic Energy

                                                          Officer on Special Duty (ER) & CPIO

                                                          Anushakti Bhawan                                                                                                   

                                                          Chatrapati Shivaji Maharaj Marg

                                                          Mumbai- 400001


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