Important Judgment Reported Today on NGO is a Public Authority under RTI Act Amaresh Patel LANDMARK JUDGMENT Wed, Sep 18, 2019, at ,02:19 AM Title of the Case – NGOs partially or substantially financed by Govt is a Public Authority Name of the case – D.A.V. College Trust & Management Society & ors vs. Director of Public Instruction., C.A. No. 9828 of 2013 (Supreme Court) Date of Judgment – 17th Sept, 2019 Judges: Justice Deepak Gupta and Justice Aniruddha Bose Subject and sections involved – Section 2 (h) of the Right to Information Act, 2005. Issue: Whether non-governmental organisation substantially financed by the appropriate government fall within the ambit of ‘public authority’ under Section 2 (h) of the Right to Information Act, 2005? Whether an NGO or body is substantially financed by the government is a question of fact which has to be determined on the facts of each case? Fact of the Case: The case before the Supreme Court is that colleges or associations making huge profit and are substantially funded by government claims that NGOs are not covered under the RTI Act. Ratio of the case The division bench of Supreme Court held that all the institutions including NGOs which has been substantially funded by government are public authority within the meaning of RTI Act and thus they are liable to furnish information as asked. What is Substantial Funding It was observed in regard to the question on Substantially financed, that ‘substantial’ means large portion. It does not necessarily have to mean a major portion or more than 50%. No hard and fast rule can be laid down in this regard. Substantial financing can be both direct or indirect. To give an example, if a land in a city is given free of cost or on heavy discount to hospitals, educational institutions or such other body, this in itself could also be substantial financing. The very establishment of such an institution, if it is dependent on the largesse of the State in getting the land at a cheap price, would mean that is is substantially financed. Merely because financial contribution of the State comes down during the actual funding, will not by itself mean that the indirect finance given is not to be taken into consideration. The value of the land will have to be evaluated not only on the date of allotment but even on the date when the question arises as to whether the said body or NGO is substantially financed. There may be cases where the finance is more than 50% but still may not be called substantially financed. Supposing a small NGO which has a total capital of Rs.10,000/ gets a grant of Rs.5,000/ from the Government, though this grant may be 50%, it cannot be termed to be substantial contribution. On the other hand, if a body or an NGO gets hundreds of crores of rupees as grant but that amount is less than 50%, the same can still be termed to be substantially financed. Another aspect for determining substantial finance is whether the body, authority or NGO can carry on its activities effectively without getting finance from the Government. If its functioning is dependent on the finances of the Government then there can be no manner of doubt that it has to be termed as substantially financed. While interpreting the provisions of the Act and while deciding what is substantial finance one has to keep in mind the provisions of the Act. This Act was enacted with the purpose of bringing transparency in public dealings and probity in public life. If NGOs or other bodies get substantial finance from the Government, we find no reason why any citizen cannot ask for information to find out whether his/her money which has been given to an NGO or any other body is being used for the requisite purpose or not.