The Karnataka Information Commission (KIC) on Wednesday directed the Bangalore International Airport Ltd (BIAL), the airport project promoter, to furnish information sought by citizens under the Right to Information Act (2005) (RTI Act) and to appoint public information officers.
The order was passed following a complaint lodged with the KIC on March 14, 2007, by Benson Isaac, a resident of Yelahanka New Town in Bangalore.
Isaac had alleged that he had been refused a copy of the suo motu disclosure of BIAL, required to be published under Section 4(1)(b) of the RTI Act as both the Centre and the state governments have an equity participation of 26 per cent in the project based on the public-private partnership (PPP) model.
He further stated that the state government agency, Karnataka State Industrial Investment and Development Corporation (KSIIDC), had provided the site to BIAL free of all encumbrances under the lease agreement. Apart from this, the state government had agreed to provide a loan of Rs 350 crore to BIAL under the state support agreement (SSA) signed with the latter. "As there is substantial government participation in the project, details have to be made public," Isaac had argued.
However, the BIAL rejected his claim stating that the provisions of the RTI Act and the Karnataka Transparency in Public Procurement Act (1999) were not applicable to it as it was not a public authority. "BIAL is a company with equity participation of the private sector to the extent of 74 per cent and as a result, furnishing of information suo motu or otherwise does not arise.
BIAL is not a government company and the management is vested in a board of directors whose directors representing private promoters constitute a majority," the company contended. The cost of the project is Rs 1,930 crore and the state promoters have contributed only 22.53 per cent of the project cost (which is less than 50 per cent of the project) and therefore the latter cannot be said to have financed the project substantially, BIAL authorities maintained.
The KIC, after hearing both parties, was of the view that the airport project does come under the purview of `substantially financed' as defined by the Comptroller and Auditor General (Duties, Powers and Conditions of Services) Act 1971, which allows for auditing of accounts substantially financed by the government.
The KIC also rejected BIAL's argument that the loan of Rs 350 crore was not being given from the consolidated fund of the state. It also noted that direct financing by the government in the project was higher than the financing by private players. Regarding control, the KIC noted that a holding of 26 per cent of the equity gave certain powers to the government to block decisions in the shareholders' meeting, which are required to be passed by a 75 per cent majority.
While passing the order state chief information commissioner K K Misra stated: "As the project serves a public purpose, the public have the right to know about the proper management of the project. The project is subject to audit by the CAG and it will be a negation of the fundamental rights if information is not provided to them".
