2024 (6) TMI 705 - HC - Indian Laws

Cooperative societies registered under state acts are not public authorities under RTI Act Section 2(h)

The Madras HC held that a cooperative society registered under the Tamil Nadu Co-operative Societies Act does not constitute a public authority under ... Public authority - Right to Information Act, 2005 - co-operative societies not public authority - ownership, control or substantial financing by the StatePublic authority - co-operative societies not public authority - ownership, control or substantial financing by the State - Whether the petitioner society is a public authority under the Right to Information Act, 2005 and liable to furnish the information sought - HELD THAT: - The Court accepted the petitioner's contention that a co-operative society registered under the Tamil Nadu Co-operative Societies Act is not a public authority within the meaning of Section 2(h) of the RTI Act in the absence of material showing ownership, control or substantial financing by the appropriate Government. Reliance was placed on the decision in Thalappalam Service Cooperative Bank Ltd. and Others and the Division Bench decision in Public Information Officer v. The Registrar, Tamil Nadu Information Commission and Others , which were held to be squarely applicable. Applying those precedents, and noting that the society is managed by an elected board and is autonomous, the Court concluded that the RTI Act does not extend to the petitioner society and therefore the order of the State Information Commissioner directing disclosure could not be sustained. [Paras 11]The petitioner's society is not a public authority under the RTI Act; the Information Commission's order directing disclosure is quashed.Final Conclusion: Impugned order dated 04.05.2022 of the State Information Commissioner is quashed and the writ petition is allowed; no costs. Issues Involved: The judgment involves a challenge to an order passed under the Right to Information Act, 2005 by the 1st respondent in S.A.No.6082/A/2022.Details of the Judgment:Issue 1: Applicability of Right to Information Act to Cooperative Societies The petitioner, a society registered under the Tamil Nadu Cooperative Societies Act, argued that it is not a public authority u/s 2(h) of the RTI Act, as it is not a statutory body and does not perform any public function. Citing legal precedents, including the case of Thalappalam Services Cooperative Bank Ltd. v. State of Kerala, it was contended that cooperative societies are not bound by the RTI Act.Issue 2: Request for Information and Appeals The 4th respondent had requested information under Section 6(1) of the RTI Act, seeking details related to loans and beneficiaries from the petitioner society. Despite the society's refusal to provide the information, appeals were filed before the 2nd and 1st respondents, leading to the impugned order directing the society to furnish the information.Issue 3: Allegations and Counter Affidavit Allegations of irregularities in loan disbursements by the petitioner society were raised by the 4th respondent, highlighting concerns about funds intended for farmers ending up in the wrong hands. The counter affidavit detailed various loan waiver schemes and incentives provided by the Government of Tamil Nadu.Judgment and Conclusion The Court, relying on legal precedents, held that cooperative societies registered under the Tamil Nadu Co-operative Societies Act are not obligated to provide information under the RTI Act. Consequently, the impugned order directing the petitioner society to furnish information was quashed, and the writ petition was allowed with no costs incurred.