NGOs which receive considerable finances from the government have to disclose vital information, ranging from finances to hierarchy to decisions to functioning, to citizens who apply under RTI
Non-governmental organisations (NGOs) “substantially” financed by the government fall within the ambit of the Right to Information Act, the Supreme Court held in a judgment on Tuesday.
A Bench of Justices Deepak Gupta and Aniruddha Bose laid down that NGOs which receive considerable finances from the government or are essentially dependent on the government fall under the category of “public authority” defined in Section 2(h) of the Right to Information (RTI) Act of 2005.
This means that they have to disclose vital information, ranging from finances to hierarchy to decisions to functioning, to citizens who apply under RTI. An NGO, the court said, may also include societies which are neither owned or controlled by the government, but if they are significantly funded by the government, directly or indirectly, they come under the RTI Act.
The court defined “substantial” as a “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,” Justice Gupta wrote in the judgment.
If government gives land in a city free of cost or on heavy discount to hospitals, educational institutions or any such body, this in itself could also be substantial financing, the judgment explained.