RTI Judgement Series
RTI Judgement Series: When a PIO claimed that the file was stolen or lost

The CIC directed the PIO to file a police complaint and give a copy of the complaint and certificate from the additional commissioner certifying that this file with the demand draft has been stolen or lost. This is the 68th in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application

The Central Information Commission (CIC), while allowing an appeal directed the Public Information Officer (PIO) and executive engineer of Municipal Corporation of Delhi (MCD) to provide information, including copy of police complaint, statements and certificate from the additional commissioner (engineering) about the stolen or lost file.

 

While giving this important judgement on 6 October 2009, Shailesh Gandhi, the then Central Information Commissioner said, “The PIO will give the information consisting of the police complaint, statement of JE/AE and a certificate from the additional commissioner (engineering) as described above to the appellant and the Commission before 25 October 2009.”

 

New Delhi resident Satya Prakash Bagaria, on 20 December 2008, sought information under the Right to Information (RTI) Act from the executive engineer of MCD. He sought information about his payment of security amount for laying telecom ducts, which was given to his company by Tata Teleservices. Here is the information she sought and the reply provided by the PIO...

 

A. Reason for non-refund of security deposit.

PIO's Reply: The question was in the form of query.

 

B. Reason for harassment of the appellant.    

PIO's Reply: As above.

 

C. Details of proposed actions which was to be taken by MCD against its errant officials with date.

PIO's Reply: As above.

 

D. Request to fix date and time to refund the security amount with interest thereon from the date of request for refund of the same was made.

PIO's Reply: The appellant is requested to contact the office any working day between 4.00 pm and 5.00 pm to sort out the issue. The office address for the had been given i.e O/o Ex. Engineer (M)-I, Municipal Corporation of Delhi, Arjun Marg, Defence Colony, New Delhi - 110024.

 

E. Name and designation posts of all the MCD employees who were responsible and accountable in the matter of the refund of the security deposit.       

PIO's Reply: The refund of bank guarantee deposited was dealt by the concerned JE/AE of the area.

 

Bagaria citing non-receipt of complete information from the PIO, then filed his first appeal. The First Appellate Authority (FAA), in his order, directed the PIO to give information related with query no D within one month.

 

Despite directions from the FAA, Bagaria claimed that the PIO provided evasive and misleading information. He then approached the CIC with his second appeal.

 

During a hearing before the Commission, the PIO stated that the file relating to this matter had been stolen or lost and hence he was unable to give any information.

 

Mr Gandhi, the then CIC, noted that Bagaria had given a demand draft of Rs98,175 to MCD, out of which Rs46,750 was given as refundable security deposit. Bagaria was not refunded the deposit and therefore sought information regarding it through the RTI.

 

The PIO claimed that the entire file and the draft of Rs98,175 appeared to have been stolen/ lost and therefore MCD was not refunding Rs46,750 to the appellant (Bagaria).

 

Mr Gandhi then directed the PIO to file a police complaint for theft/loss of the said file with the demand draft mentioning the names of the officers who handled the file before 20 October 2009. “The PIO will also obtain a certificate from additional commissioner (engineering) certifying that this file with the draft has been stolen/lost. The PIO will also obtain a statement about this from the JE/AE. The PIO will also certify that the draft has not been enchased by the MCD,” the CIC said.

 

There was one more complaint registered before the Commission which was related to the same matter. Bagaria filed his second appeal on 13 August 2009.

 

The Commission noted that the receipt for the RTI fees was made in the name of Shyam Bhatnagar and the PIO sent a reply by speed post on 27 January 2009. In view of this no penal proceeding were initiated, the CIC said.

 

While allowing the appeal, Mr Gandhi, directed the PIO to give information consisting of the police complaint, statement of JE/AE and a certificate from the additional commissioner (engineering) to Bagaria before 25 October 2009.

 

CENTRAL INFORMATION COMMISSION

 

Decision No. CIC/SG/A/2009/001979/5031

http://www.rti.india.gov.in/cic_decisions/SG-06102009-03.pdf

Appeal No. CIC/SG/A/2009/001979

 

Appellant                                            : Satya Prakash Bagaria

                                                            New Delhi - 110019

 

Respondent                                        : SC Yadav

                                                            APIO & Executive Engineer

                                                            Municipal Corporation of Delhi

                                                            O/o the Executive Engineer (M)-I

                                                            Central Zone, Lajpat Nagar, New Delhi

User

COMMENTS

MOHAN

4 years ago

One PIO answered to a RTI query - 'NOT AVAILABLE" (without providing the details why it was not available)

1. Can his reply be construed as " REFUSED".
2 Can a PIO reply to a RTI application - "NOT AVAILBE" without providing the details why it was not available.

Kindly give me a reply

Bombay Stock Exchange declares 2,050 companies as ‘illiquid’

The Bombay Stock Exchange has identified those stocks which are illiquid as per SEBI’s new definition and will move them to a separate trading window which will begin from 8th April. Some well known companies are also in the list

Acting on a recent directive from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), vide notice 20130401-39, has shortlisted all the ‘illiquid’ stocks and moved them to a separate window which will be traded from 8  April 2013.
The number of such stocks is 2,050 and represents over 50% of the ‘actively’ traded stocks on BSE! Some of the illiquid stocks which maybe familiar to investors include Dr Agarwals Eye Hospital, Asit C Mehta Financial Services, SKP Securities, Almondz Global Securities, Lumax Automotive Systems, Allsec Technologies, Bannari Amman Spinning Mills, Indus Fila, Rane Brake Lining, Rane Engine Valve, Ginni Filaments and Khaitan (India).
 

As per our analysis on the BSE website, the total number of stocks on BSE is 6,922. Out of this, only 3,888 stocks (including ETFs and such) are ‘active’, while 1,312 stocks are suspended and 1,722 stocks are delisted. The number of so called ‘active’ stocks is little over 50% of the BSE’s entire universe. This means, only 1,838 or just 26.55% of the entire BSE universe will be remaining and actively traded in the ‘normal’ segment of the exchange, if the illiquid stocks are moved to a separate window.
 

The implications of this move could be far reaching. This will further reduce the number of stocks traded on the exchange, making it difficult for investors to invest in niche or specialised companies (which are normally illiquid).
 

We had written about this in an earlier post. You can read about it here: Curbing manipulation in illiquid stocks: Another harebrained idea by SEBI?
 

The illiquid stocks which have been shortlisted will be moved to the “periodic call auction” window from 8 April 2013 onwards, where marketmen can trade on such stocks. The liquidity situation will be monitored by the exchanges every quarter. Every quarter, the exchange will review liquidity and add or remove stocks from the normal segment to the so called “periodic call auction” window where illiquid stocks are traded.
 

These stocks which are part of the 2,050 illiquid stocks, according to BSE, have failed to meet SEBI’s criteria for meeting definitions of liquidity for the quarter ended March 2013. As per SEBI circular no. CIR/MRD/DP/6/2013 dated 14 February 2013, a scrip is shortlisted as illiquid if all the following conditions are met: 
 

  • The average daily trading volume of a scrip in a quarter is less than 10,000;  
  • The average daily number of trades is less than 50 in a quarter;  
  • The scrip is classified as illiquid at all exchanges where it is traded.

 

The entire list of 2,050 stocks can be found here: (click here)

User

COMMENTS

VIJAY SHAH

3 years ago

NEELAMALAI AGRO INDUSTRIES LIMITED (INCORPORATED ON 21-04-1943) HAVING NEARLY 1600 ACRES OF TEA ESTATE IN COONOOR (INDIA).THE SERIAL NUMBER IS 381 IN ILLIQUID LIST AND THE BSE CODE NUMBER IS 508670. THIS COMPANY IS NOT TRADED IN THE LAST TEN MONTHS THAT IS FROM 21-02-2013 AND THE STORY IS NOT OVER YET ONE MARKET LOT IS OF 100 SHARES AND THE PRICE IS 1200 PER SHARE THAT IS 1200 X 100 = 1,20,000. THIS IS EVEN MORE DIFFICULT THAN BOMBAY OXYGEN CORPORATION LIMITED (INCORPORATED ON 3-10-1960) HERE ONE MARKET LOT PRICE IS OF NEARLY RUPEES 28270/- THAT TOO IN PHYSICAL FORM (2nd HIGHEST IN BSE). SO HOW CAN ONE RETAIL SHAREHOLDER CAN BUY A STOCK OF IT, HAS THE BOMBAY STOCK EXCHANGE (INCORPORATED ON 9-7-1875) HAS ANY ANSWERS TO IT?

ASHOK M SHAH

4 years ago

Dear All,
No of trade and TOTAL No of shares get traded depends upon SMALL or LARGE Eq Capital and also on Face value of share and stock price also.
But SEBI formula has put all Co in one single category with Rs.3 Cr capital and Rs.30 Cr eq capital.
SEBI should come out with SPECIAL COMPULSORY DELISTING offer for investor for all this stocks as they have power to tackle all Co for benefits of investors.

Bosco Menezes

4 years ago

Got a shock today as HDFC Securities with which i have my online trading account is not allowing online trading in these "illiquid" scrips !!

I rang the Customer Care number of HDFC Securities & the representative informed me that such scrips can no longer be traded through on-line trading, they have to be traded via tele-broking (call-n-trade) !!

Whether this is a permanent situation, or temporary, the representative could not say. So i have written to the customer care email id asking this question, and for resolution to this problem. Got an automated reply that they will get back within 1 business day.

Anyway, looking at the trading in these iliquid scrips today, it does seem like even the existing liquidity has been curtailed. Whether this will improve after people get used to the new system is to be seen. In 3-6 months we will know for sure.

VIJAY SHAH

4 years ago

THE ONLY ONE ADVANTAGE IN INVESTING IN INDIAN EQUITY MARKETS IS “ALL LONG TERM CAPITAL GAINS IT ATTRACTS ZERO PERCENTAGE TAX” THAT IS HOLDING SHARES FOR MORE THAN 365 DAYS

VIJAY SHAH

4 years ago

NO PROBLEM BOSCO SIR, THE INVESTORS SHOULD ALWAYS FOLLOW THE GOLDEN RULE WHILE INVESTING IN THE EQUITY MARKET THAT IS THE LAW OF FARM; A SEED HAS TO GROW IN DIFFERENT SEASONS. BESIDES THIS ALWAYS REMEMBER THE 3R THAT IS THE RIGHT BUSINESS, THE RIGHT MANAGEMENT AND THE RIGHT PRICE. ALWAYS BE PATIENCE WHEN OTHERS ARE GREEDY AND WHEN OTHERS ARE FEARFUL BE LITTLE GREEDY.

Bosco Menezes

4 years ago

Thanks Adi, Vijay for bringing out additional aspecst of this issue.
The new rules besides affecting shareholders of the so-called "illiquid" group negatively, could also impact all other investors. Because if an investor needs to take money out of the market and finds it too hard to liquidate an "illiquid" stock because of the new rules, he will sell a "liquid" stock instead. So even investors who do not hold these "illiquid" stocks will be affected to that extent.

VIJAY SHAH

4 years ago

HATS OFFS TO LATE DR TILAKRAJ DEWAMAL MEHTA (AGE 75 YEARS) FOR FLAT PRODUCTS EQUIPMENTS INDIA LIMITED (FPE) INCORPORATED ON 28-5-1986 FOR THE VALUE CREATION AND SHAREHOLDERS INTEREST HE HANDED OVER THIS COMPANY TO BELGIUM BASED COCKERHILL MAINTENANCE AND INGENIERIE (CMI) AND MAKING IT CMI FPE LIMITED ON 23-9-2008. THE BOMBAY STOCK EXCHANGE HAS FORGOTTEN LATE DR TILAKRAJ DEWAMAL MEHTA’S EFFORTS AND HIS HARDSHIP IN SETTING AN INDUSTRY IN ANDHERI AT THE AGE OF 52 YEARS. IN PAST HE ALSO WORKED HARD IN TATA STEEL, JAMSHEDPUR. THE REASON HE HANDED OVER HIS COMPANY WAS OLD AGE AND ILL HEALTH. TODAY HIS WIFE IS A TOP SHAREHOLDER NAMED NISHI TILAKRAJ MEHTA HOLDING 97000 EQUITY SHARES APPOXIMATELY. CURRENTING SHE IS STAYING IN JUHU, MUMBAI

VIJAY SHAH

4 years ago

FORGET ILLIQUID STOCKS A 52 YEARS OLD COMPANY NAMED BOMBAY OXYGEN CORPORATION LIMITED WAS INCORPORATED ON 3-10-1960 IN MUMBAI (BSE CODE NUMBER 509470) AND (SERIAL NUMBER 416) LISTED IN BOMBAY STOCK EXCHANGE IS NOT AVAILABLE IN DEMATERALISE FORM. THE COMPANY SHARES ARE AVAILABLE IN THE LOTS OF 5 (SHARES) COSTING RUPEES 26 400/- (RUPEES TWENTY SIX THOUSAND FOUR HUNDRED ONLY)

Adi Daruwalla

4 years ago

Another thing that is surprising is why SEBI gets the wake up call now. Was there no EWAC (Early Warning and Avoidance System) to stem the junk and rot from the BSE or are they playing only with numbers as al number crunchers do ?? And how did these scrips continue to exist on the bourse??

Adi Daruwalla

4 years ago

Classifying them as illliquid is ok. But many stocks on this list are not being dematted by banks. So selling has to happen in physical mode. 25 transfers are sold for INR 75/= by the BSE. Plus franking difficulties for the transfer fees. Attaching self signed PAN cards.
Signature mismatch at registrars end, objections, give signature verification from nationalized banks. So if demat is permitted in all these stocks,(only those that trade above the face value of INR10/= or whatever the face value.) Only those should be dematted. The rest are a waste and junk and we dont know when they will recover if ever...

Nilesh KAMERKAR

4 years ago

Just 27% of the liquid stocks are liquid. Thus the stock exchange itself becomes 'illiquid'.

Now will the stock exchange be auctioned off through some separate window?

Ashok Visvanathan

4 years ago

They should not have 10000 shares as fixed. It should be a fraction of the free float.

REPLY

Bosco Menezes

In Reply to Ashok Visvanathan 4 years ago

In fact, Ashok, several hundreds of small caps have been trading few hundred shares to a couple of thousand shares daily, historically. 10k shares would be traded in these stocks only maybe few times a year, maybe in reaction to results etc. People buying these stocks have not bought them because they are "liquid". Now suddenly they are declared "illiquid" & moved to the new mechanism whereby shareholders now have to face the consequences.

Nilesh KAMERKAR

In Reply to Bosco Menezes 4 years ago

Please do take a look at some positives too.(For more could have been lost)

1)The recommendation could very well have been to extinguish shares because they are 'found' to be illiquid & mostly owned by 'outside' shareholders who also happen to be retail investors .

2)The retail investor's interest is being protected by allowing him to let him keep his illiquid shares.( by not forcing him to sell within some stipulated time)

3)Finally lets be grateful, the retail investor has not been burdened with the responsibility of creating liquidity in these illiquid shares






Bosco Menezes

In Reply to Nilesh KAMERKAR 4 years ago

Lol ..... while in a lighter vein, heres one from my side too : Investors should apply to their DP's to RE-materialise shares (get physical certificates), as they will be holding for a long long time. That way they will save on demat a/c charges :-)

ASHOK M SHAH

4 years ago

Yesterday 2456 shares were traded on BSE So from 8th,13 2050 would be illiquid stocks So does that mean stock market has 80 % illequid stocks and SEBI wants to certify that 80 % stks are not managed by us as a regulator and hence to control regulation better stop trading and hence its not required to manage stocks and enjoy life as a regulator.

ASHOK M SHAH

4 years ago

Yesterday 2456 shares were traded on BSE So from 8th,13 2050 would be illiquid stocks So does that mean stock market has 80 % illequid stocks and SEBI wants to certify that 80 % stks are not managed by us as a regulator and hence to control regulation better stop trading and hence its not required to manage stocks and enjoy life as a regulator.

ASHOK M SHAH

4 years ago

Yesterday 2456 shares were traded on BSE So from 8th,13 2050 would be illiquid stocks So does that mean stock market has 80 % illequid stocks and SEBI wants to certify that 80 % stks are not managed by us as a regulator and hence to control regulation better stop trading and hence its not required to manage stocks and enjoy life as a regulator.

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