Demanding Information About Bank Accounts & Income Tax Returns, Without Statutory Backing, Violates Right To Privacy

In W.A.Nos. 2112 & 2118 of 2018, appeal was filed before the Kerala High Court against the judgment of the single bench wherein the objection of several petrol pump dealers against the petroleum companies demand for disclosure bank account details and income tax returns were disallowed. The dealers had claimed that such demand is violation of right to privacy.

Referring to judgment of the Hon'ble Supreme Court in K.S.Puttaswamy v. Union of India : (2017) 10 SCC 1, the division bench said observed that the said judgment said held that any action by the State or its agencies which curbs or restricts the right to privacy of a citizen shall pass each of the following three tests: (1) test of legality, that is, such action must have a legislative or statutory basis (2) test of need and necessity, that is, such action  shall serve a definite purpose in public interest and (3) test of proportionality, that is, such action shall be at the minimum level required to achieve the object.

In answer to the issue whether details of bank accounts constitute private and personal information, the bench referring to District Registrar and Collector v. Canara Bank : AIR 2005 SC 186) &  Ram Jethmalani v. Union of India : (2011) 8 SCC 1, held that There can be no doubt with regard to the fact that details of the bank account of a person constitute personal and private information. The statement of account of a person in a bank would reveal the amount in deposit in the bank and the amounts deposited and withdrawn in the past. It would give a clear picture of a person's financial capacity. It would disclose the cash transactions which a person had with third parties. It would reveal the amount transferred to and received by a person from another. It may show the loans availed of by a person from the bank. Habits of a person, his life style, his association with other persons and many other personal matters can be deduced from a close scrutiny of his bank account for some period. Therefore, we have no hesitation to hold that details of the bank account of a person constitute personal information and that any demand made to disclose such information amounts to infringement of his right to privacy. Privacy attaches to the person and not the place where the information is kept.

Further, in Girish RamchandracDeshpande v. Central Information Commissioner: (2013) 1 SCC 212, in the context of Section 8 of the Right to Information Act, the Apex Court has held that, the details disclosed by a person in his income tax returns are personal information. Therefore, A demand for furnishing income tax returns filed by a person would constitute invasion of the privacy of a person.

Therefore as per the bench, the demands of the oil companies did not pass the tests laid down in the K.S.Puttaswamy judgment.

Finally, in reply to the contention of the oil companies that the demands have been made to ensure safe practices and marketing discipline and that no retail outlet is being conducted on benami basis, the bench observed that the tests of necessity and proportionality need not be considered when the demand made for furnishing the information does not pass the test of legality.