WEST BENGAL FINANCIAL CORPORATION
Publication under section 4[1] [b] of the Right to Information Act, 2005
[i] West Bengal Financial Corporation [WBFC] is a state level developmental financial institution set up under the State Financial Corporations Act, 1951 [SFCs Act] for providing term loans as also working capital term loans to micro, small and medium enterprises for setting up industrial and service sector enterprises in the state of West Bengal.
Having its head office in the 3rd and the 4th floors of 12A NS Road, Kolkata 700 001, WBFC [PBX numbers: (033) 2230 3083, 2230 0055, 2230 4954 and 2242 0313] has got 14 district offices all over the State with three regional offices at Siliguri, Durgapur and Kolkata. WBFC may, ordinarily, sanction loan up to a limit of Rs.5 crore per project. Such threshold, however, may go up to Rs.20 crore in deserving cases, subject to clearance from the competent authorities.
[ii] The broad powers for sanctioning of loans are as under:
|
Sanctioning authority |
Maximum sanctioning power per project in Rs. lakh |
|
EXECUTIVE COMMITTEE: |
|
|
In case of body corporate |
500 |
|
In case of proprietary & partnership concern |
200 |
|
|
|
|
MANAGING DIRECTOR: [Irrespective of constitution] |
|
|
Loan under equipment refinance scheme |
200 |
|
Other than above |
100 |
|
|
|
|
GENERAL MANAGER |
15 |
|
DEPUTY GENERAL MANAGER |
10 |
|
CHIEF MANAGER |
8 |
|
MANAGER |
5 |
|
DEPUTY MANAGER [Officiating as Manager] |
3 |
Loan proposals beyond the powers of the Executive Committee are considered by the Board of Directors.
The general superintendence, direction and management of affairs and business of WBFC are vested upon a Board of Directors [BOD] constituted in terms of section 9 of the SFCs Act. There is an Executive Committee constituted by the BOD in terms of section 18 of the SFCs Act and other committees constituted under section 21 of the SFCs Act, for discharging the functions as have been prescribed / delegated by the BOD for the purpose of assisting it in the efficient discharge of its functions.
The Managing Director, concurrently appointed by the State Government and the Small Industries Development Bank of India [SIDBI], is a whole-time officer of WBFC and performs such duties as the BOD, by regulations, entrusts or delegates to him.
The loan proposals are processed by the members of the staff of the Operations & Accounts Department, headed by a General Manager. The Deputy General Manager [Administration] looks after the general administration of the Corporation and also coordinates among the branch offices. The Monitoring Department, headed also by a Deputy General Manager, looks after the release of loan funds and other related issues and the members of the staff of the Recovery Department, headed by a General Manager, are entrusted to look after the recovery related matters as also the internal audit cell. The Secretary looks after the corporate affairs and is also the State Public Information Officer of this public authority. The Secretary is also entrusted to accept public complaints and/or suggestions, eventually reporting directly to the Managing Director.
[iii] Any proposal after being processed by the front-desk officials of the department concerned is placed before his/her superior for consideration and approval who, in turn, either approves/declines the same, should it be within his/her powers, or sends it with his/her views to his/her superior. The final disposal comes from the Managing Director / Executive Committee / BOD depending on their respective proprietary limits.
[iv] WBFC, apart from being principally governed by the provisos of the SFCs Act, follows various norms/statutes/guidelines set from time to time by the Small Industries Development Bank of India [SIDBI], the State Government, the RBI, the Industrial Development Bank of India [IDBI] and other government agencies - both in the State as also at the Centre. The present norm stipulates disposal of loan application normally within three weeks and the guidelines for fair practices code issued by RBI are adhered to.
[v] Principally governed by the provisos of the SFCs Act, and guided by the directives emanating from SIDBI, the State Government, RBI, IDBI and other government agencies, WBFC issues Office Orders / Office Circulars containing rules, regulations, instructions, manuals etc., from time to time, for use by its employees in discharging their functions and duties. There is a lending policy containing the broad criteria for sanctioning the loan proposals, OTS guidelines for considering compromise settlement proposals from the borrowers, WBFC General Regulations, 2003 to deal with the corporate and other related affairs of the Corporation and WBFC [Staff] Regulations to deal with the staff matters.
[vi] There are umpteen categories of documents held by the Corporation in course of its lending and other activities viz., legal documents, accounts statements, corporate documents, MOUs with different authorities, loan related documents of all the borrowers, govt. directives and notifications, annual reports of the Corporation etc.
[vii] There is no such arrangement as of now for consultation with or representation by the members of the public in relation to the formulation of the policies or implementation thereof of the Corporation, save and except representation of shareholders in the BOD in terms of section 4[3][d] of SFCs Act.
[viii] The Corporation has a BOD, an Executive Committee a Default Review Committee and an Internal Audit Committee apart from various in-house committees for efficient functioning of it. The meeting of these bodies and/or committees is not open to the public nor are the minutes distributed to the general public.
[ix] A directory of the officers and the employees of the Corporation is available in this site containing their basic salary per month as on 1 April 2010.
[x] Please refer to serial number [ix] above. The system of compensation follows the directives of the state govt. issued from time to time.
[xi] The Corporation has not yet appointed any agency.
[xii] The Corporation does not have any subsidy programme of its own but releases government subsidies through it to the eligible beneficiaries according to the extant policy formulation.
[xiii] No such activity as granting concessions, permits etc. is carried out by WBFC.
[xiv] Almost all the key information, statistics, accounts, management information system etc. involving the operations of WBFC are available in electronic form. In addition, it has the website www.wbfconline.org accessible to the general public.
[xv] The information under the RTI Act, 2005 are available to the general public through the State Public Information Officer of WBFC, Sri Probal Dasgupta, in the head office of the Corporation. The Corporation has got no library or reading room as yet.
[xvi] Sri Probal Dasgupta, has been designated as the State Public Information Officer of WBFC under the RTI Act, 2005 having his office in the 3rd floor of 12A NS Road, Kolkata 700 001 and may be contacted at [(033) 2230 5297], during the usual office hours.
Publication under section 4[1] [c] of the RTI Act, 1951
Hitherto the Corporation was summoned only once by the WBIC, the second appellate authority under the RTI Act, 2005, and the verdict is reproduced below for public awareness:
WEST BENGAL INFORMATION COMMISSION
Bhabani Bhaban (2nd Floor), Alipore
Kolkata-700 027
Tele-Fax (033) 2479-1966
Appeal / Complaint No. 1310(3)-WBIC/RTI/242/07
Right to Information Act, 2005
Date of hearing on 29.09.2007
Shri Suneil Sarawgi
-Vs-
SPIO, West Bengal Financial Corporation
&
Appellate Authority, West Bengal Financial Corporation
Facts on record:
1. Shri Suneil Sarawgi sought for some information from the SPIO, West Bengal Financial Corporation in respect of Modern Refractories Pvt. Ltd., Purulia vide his RTI application dated 25.04.2007. The SPIO vide his letter No. SPIO/SS/250407/2134 dated 25.04.2007 rejected the application under section 8(1) (j) and also on the ground that the credit information as sough for by Shri Sarawgi were related to a number of pending court cases. Shri Sarawgi, being aggrieved preferred first appeal to the Managing Director and Appellate Authority, West Bengal Financial Corporation. The Appellate Authority vide his order dated 01.08.2007 upheld the decision of the SPIO. Shri Sarawgi has therefore preferred second appeal before the Commission on 07.08.2007. The Commission decided to conduct a hearing and asked both the parties to appear before the Commission on 29.09.2007.
Order:
2. Shri Kamal Chakraborty, Managing Director and Appellate Authority is found to be absent in the hearing without seeking any leave from the Commission. Nor has Shri Chakraborty authorized SPIO to represent him. The takes exception to disregard shown by the Appellate Authority to the Commission by his absence. The Commission orders that Shri Kamal Chakraborty, Managing Director and Appellate Authority of West Bengal Financial Corporation shall within a fortnight from the date of receipt of this order submit explanation explaining the reasons for his absence without taking leave of the Commission.
3. The Commission heard both the SPIO and the Appellant at length. Shri Sarawgi, it appears that has sought for following information:-
As per the original deed of mortgage what was the rate of interest for loan sanctioned to the above company?
Is there any supplementary deed or agreement for any increase in the rate of interest?
Was the rate of interest ever charged in excess of the documented rate of interest?
What is the current status of the above loan account? In case of dues, how much principle and how much interest are due?
What steps are taken for the recovery of the outstanding dues if any?
If any amount is due, what steps are taken for the security of the assets of the above company?
4. The SPIO submitted that the West Bengal Financial Corporation extending term loan to MRPL, upon executing borrower specific bipartite covenants between the lender and the borrower. Since MRPL eventually failed to discharge its liabilities scores of title suites, money suites, miscellaneous appeal, writ petitions etc. have been filed by both the parties before different courts of law. The SPIO further submitted that the items of information sought for by Shri Sarawgi relates to credit information which is specifically the matter pending before the court of law for adjudication. Moreover, the information are exempted from disclosure under section 8(1) (j) of the Act because they relate to personal information of a third party disclosure of which may cause invasion into the privacy of that third party. Since Shri Sarawgi has admitted that he is not one of the promoters director’s MRPL but is one of the shareholders only, information relating to MRPL amounts to third party information. The Commission finds argument of SPIO to be logical when a court of law is in the process of adjudicating on certain matters. The Commission finds it improper that another authority should interfere into the legal process. Shri Sarawgi is at liberty to pray to appropriate court of law for the documents required by him or may seek orders from the court directing the respondent to furnish information. The Commission also finds that the SPIO has rightly applied the provisions of section 8(1) (j) and is, therefore, under no obligation to furnish information.
5. The appeal is thus disposed of.
Sd/-
Date: 29.10.2007
Arun Kumar Bhattacharya
State Chief Information Commissioner
A In a recent writ petition [WP No.557 of 2010, Sri DK Bhaumik vs. WBFC] the petitioner moved the Honourable High Court of Calcutta seeking remedy against alleged non-compliance of WBFC under the RTI Act, 2005. In its judgement the Court observed ‘In view of availability of an efficacious alternative remedy under section 19(3) of the Right to Information Act, 2005 this Court is not inclined to entertain this writ petition. The same stands dismissed.’
Publication under section 4[1] [d] of the RTI Act, 1951
The Corporation has nothing to publish as of now.
DISCLAIMER
While utmost care has been taken to disseminate as much precise information as can be in deference to the RTI Act, 2005 and in keeping with its directives, certain parameters and / or information might undergo changes in future which may not be available here immediately upon such occurrences. The Corporation shall not be held responsible for that and the general public is hereby advised to contact us immediately to have the updated information.