D.A.V. College Trust and Management Society v. Director of Public Instructions
A non-governmental body that is substantially financed by the government — directly or indirectly — is a “public authority” under the RTI Act, even if it is privately managed.
Issue before the court
Whether NGOs and government-aided institutions that are substantially financed by the government are “public authorities” under Section 2(h) and answerable under the RTI Act.
Facts in brief
The question was whether aided educational institutions receiving substantial government grants fall within Section 2(h). The college received about 44% of its expenditure as government grants, and the State bore about 95% of its teaching-staff salaries.
Holding / decision
The Supreme Court held that NGOs substantially financed, directly or indirectly, by the appropriate government are “public authorities” under Section 2(h). On these facts — 44% of expenditure and 95% of teaching salaries from government — the financing was “substantial”, making the institution a public authority answerable under the RTI Act.
“Substantially financed” under Section 2(h) is met where government funding is significant to a body’s functioning; such NGOs and aided institutions are public authorities under the RTI Act.
A privately-run body that lives substantially on government money (grants, staff salaries) can be made answerable under RTI — it is not shielded simply because it calls itself “private”.
When to cite this case
When a substantially-financed NGO, aided school or college, society or trust claims it is not a public authority.
Later developments / current status
Builds on Thalappalam v. State of Kerala, applying the “substantially financed” test to aided institutions and NGOs.
Source & verification
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