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May 2013

PART C: Informati on on & Around

By Narayan Varma, Chartered Accountant
Reading Time 4 mins
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Information on ethical trails:

The Bhopal hospital has been at the centre of a long standing controversy over carrying out drug trials on poor gas victims but had refused to reveal information claiming confidentiality of the client- the drug companies, the hospital and the patients. The CIC has over-ruled the objections by the hospital and ordered it to reveal all information.

The hospital also contended that the trials were conducted when it was run by a trust – an autonomous body – and was not getting any grants from the Central or the State Government. It noted that the hospital had been taken over by the Government only in July 2010 since when the RTI rules should apply.

The CIC held, “Even if the patients do not agree to disclosure of the requested information, it is still open to this Commission to order disclosure of information in the larger public interest.”

Police Manual:
Maharashtra Chief Information Commissioner, Ratnakar Gaikwad has set at rest the prolonged debate over whether the Police Manual is confidential or otherwise. In a land mark order, Gaikwad held that within the meaning of the Right to Information Act, the Police Manual is not a confidential document and copy of it should be provided to applicant P K Tiwari.

“The police manual does not fall within the category of documents, which have been exempted from disclosure. The applicant should be allowed to inspect the manual and be provided the relevant papers. The director general of police should put up the entire manual on the website of the state police within a month.” Gaikwad said in his two page order.

“Taking into consideration the provisions of Section 8 of the RTI Act, it appears that refusal to provide the police manual is wrong. The view taken by the public information officer is contrary to the spirit of the RTI Act. It is essential for the common man to know the provisions of the police manual. Competent authorities should put up all such information on the website in larger public interest,” Gaikwad observed.

Motor Vehicles Tax:

The activist Sujit Nadkarni stumbled upon the scam under which the dealers of vehicles dupe the Government. The Modus operandi was

• On sale of a car, give customer a tax invoice showing that motor vehicle tax has been paid.

• Make a facsimile of the invoice, watering down the actual cost of the car and tax payable on it.

• Give the first invoice to the customer, and the second to the Government

• Pocket the difference in the amount, duping both customer and state exchequer

It was experienced by Nadkarni that when he purchased a Maruti Swift VDI on 30th March, 2008, he was issued an invoice, which said the car’s actual price was Rs. 4,35,886 and the final amount after taxes Rs. 4,90,349.

Nadkarni, however, noticed that another copy of the invoice was prepared by the car dealer for submission to the road transport authorities. The price of the car in this copy was shown as Rs. 4,21,766, while the final amount was Rs. 4,74,487.

While selling the car to Nadkani, the car dealer prepared two invoices with same number, one for the customer and the other for submission to RTO. The motor vehicle tax of Rs. 1,110 was thus evaded, although the same was collected by the car dealer from Nadkarni.

Nadkarni then conducted a sample survey of tax evasion by fraudulent invoicing. Under the Right to Information Act, he requested the Nashik RTO to furnish copies of all vehicle invoices sold in the area during 2006, 2007 and 2008.

There was, prima facie, a loss to exchequer of Crores of rupees. The transport commissioner is to conduct a detailed inquiry and file a report,” the division bench of justices A. M. Khanwilkar and A. P. Bhangale ordered.

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