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Thread: 'substantially financed' while defining any organization to be Public Body.

  1. 'substantially financed' while defining any organization to be Public Body.


    To determine, for the purpose of RTI Act, whether an organization is a public authority or not, we have to have recourse to Section 2(h) of the said Act, which reads:

    A public authority means any authority or body or institution of self
    government established or constituted

    1. by or under the Constitution
    2. by any other law made by Parliament
    3. by any other law made by State Legislatures;
    4. by notification issued or order made by the appropriate Government;and includes any €“
      1. body owned, controlled or substantially financed;
      2. non governmental organization substantially financed;
      3. directly or indirectly by funds provided by the appropriate Government.
    The term Substantially financed is not defined in the RTI Act. When a term is not defined in an Act, the normal rule is to find the definition of the term in a relatable statute or legislation and apply the same. The definition is given in Section 14(1) of CAG Act-1971 for the term substantially financed.

    According to this Section, when the loan or grant by the government to a body/authority is not less than Rs 25 lakhs and the amount of such loan or grant is not less than 75% of the total expenditure of that body/authority, then such body/authority shall be deemed to be substantially financed by such grants/loans. Direct funding could be by way of cash grants, reimbursement of expenses etc., and indirect funding could be meeting the expenses directly or in kind.

    The case under reference is Appeal No.163/ICPB/2006, F.No.PBA/06/158, Dated November 28, 2006
    Appellant: Shri Veeresh Malik, New Delhi Public authority: Indian Olympics Association / Deptt. of Sports

    This article has been posted on our wiki here: Substantially Financed [Right to Information Wiki]


    Attached Files Attached Files


  2. Thanks for providing excillent stuff.


  3. Thats a great info Keep it up.

  4. #4
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    How to check if it's a Public Authority for RTI Act



    The CIC has given detailed arguments in determining if IFCI is a Public Authority (PA) or not, under the RTI Act.
    Although both IFCI and the Ministry Of Finance contended that IFCI is not a PA, CIC has finally ruled that it is indeed a PA under RTI.
    Some of the arguments given by CIC are worth noting for future interpretations of whether anyone is "PA" or not.
    Please see the full decision of CIC at:

    https://cic.gov.in/CIC-Orders/Decision_31052007_01.pdf

  5. Re: How to check if it's a Public Authority for RTI Act


    This is a good decision Karira,
    Even if this is the case, the law is clear that funds need
    not be directly provided to constitute substantial finance to a body. In this case it
    stands admitted that indirect finance of 23.53% exists, which cannot be
    construed to be insubstantial.
    An indirect linkage also make an organization Public Authority

  6. Re: How to check if it's a Public Authority for RTI Act


    If we can continue the discussions regarding 'decision of Public Body' here, it will be of greater importance;

    https://www.rtiindia.org/forum/188-su...blic-body.html

    Regards

  7. #7
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    Name:
    C J Karira
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    Re: How to check if it's a Public Authority for RTI Act


    I am sorry, i should have done a search of the forum before posting.
    Is it possible to "merge" the two threads ?
    Thanks.

  8. Re: 'substantially financed' while defining any organization to be Public Body.


    Thank You for understanding. Thread merged.

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