Indian Potash Limited comes under RTI Act's ambit: CIC

Indian Potash Limited (IPL), the Rs 15,000-crore fertliser behemoth, is answerable to people under the Right to Information Act, the full bench of Central Information Commission has ordered, rejecting arguments that it was established under the Companies Act, hence exempted from the transparency law.
The direction by the Central Information Commission (CIC) bench will mean that IPL will have to set up the RTI application processing body within six weeks with the appointment of designated CPIOs and Appellate Authority within the company.
The company has also been directed to put up on its website information about its working as mandated by the disclosure clause of the Right to Information Act.

In its submission, IPL had argued that it having been incorporated under the Companies Act, 1956 was not a public authority as defined under Section 2(h) of the RTI Act, 2005.
"Furthermore, in context of the appointment of its Managing Director with the approval of Central Government, the Respondent (IPL) has relied on the provisions of the Sections 198, 269 and 309 of the Companies Act, 1956," the CIC noted.
IPL had also showed two entities, namely Gujarat State Fertilisers and Chemicals Ltd. (with 7.87 per cent holding) and Bihar State Cooperative Marketing Union Ltd. (0.42 per cent holding), as non public-authority shareholders.

"As a result, the total non-governmental funding in IPL has risen to 62.71 per cent in the tabular representation, from the earlier submission in affidavit...Where it stood at 53.76 per cent," it suggested.
Rejecting the contention, the Bench said it is evident that the objective behind creation of IPL still remains its core area of operation which is "rendering support to the agricultural sector in fulfillment of the government's aims and the development of the agrarian sector".