A division bench of the Delhi High Court, comprising the Chief Justice DK Upadhyaya and Justice Tushar Rao Gedela, held that information related to an internal investigation being carried out by the Securities and Exchange Board of India (SEBI) is exempt from disclosure under the Right to Information Act, 2005. The bench upheld an order by a single judge refusing to overturn a decision by the Chief Public Information Officer (CPIO) which had denied access to certain information sought by an appellant regarding SEBI’s probe.
The appellant had submitted a complaint to SEBI alleging that a large number of shares in a company had been allocated to related parties, implying possible insider trading. SEBI conducted an investigation and concluded that the data available did not substantiate the allegations made in the complaint. Concerning the insider trading allegation specifically, SEBI forwarded the complaint to the relevant division for further consideration or action. The appellant then filed an RTI request for details about SEBI’s internal probe into this matter.
SEBI, through its statutory authorities, denied the request for information. The reasons provided were that releasing the information could obstruct or impede the investigation, negatively affect the collection of evidence, and potentially cause unwarranted harm to third parties. When the matter was brought before the High Court, these justifications were accepted. The Court found that the cumulative effect of the reasons sufficiently justified non-disclosure.
The Court specifically held that the information sought by the appellant is exempt under Section 8(1)(h) of the RTI Act, 2005. Under that provision, information which would impede the process of investigation or harm the proceedings may be withheld. Accordingly, the Court dismissed the appeal brought by the appellant.
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