Body Controlled by Govt Officials & Substantially Financed by State is a 'Public Authority' Under RTI Act S.2(h): Karnataka High Court - 2025-09-27

Nirmiti Kendra is a 'Public Authority' Under RTI Act, Holds Karnataka High Court; Imposes Rs. 50,000 Costs for Attempt to Evade Transparency

Bengaluru: The Karnataka High Court has delivered a significant ruling, declaring that the 'Nirmiti Kendra', a society registered under the Karnataka Societies Registration Act, 1960, falls within the definition of a "Public Authority" under Section 2(h) of the Right to Information (RTI) Act, 2005.

In a strongly-worded judgment, Hon'ble Mr. Justice Suraj Govindaraj dismissed the writ petition filed by the Nirmiti Kendra of Chitradurga, which challenged an order from the State Information Commission. The court not only upheld the Commission's directive to furnish information but also imposed costs of Rs. 50,000 on the petitioner for attempting to suppress transparency and avoid public disclosure.

Background of the Case

The case originated from an RTI application filed by Sri H R Thimmaiah, seeking information from the Nirmiti Kendra. The Kendra denied the request, contending that it was a private society, not financed or aided by the government, and therefore not subject to the provisions of the RTI Act.

The matter escalated to the State Information Commission, which, in an order dated August 29, 2017, directed the Nirmiti Kendra's Public Information Officer (PIO) to provide the requested documents and imposed a penalty of Rs. 25,000. Aggrieved by this decision, the Nirmiti Kendra approached the High Court, seeking to quash the Commission's order.

Arguments in Court

• Petitioner's Stance (Nirmiti Kendra): Senior Advocate Sri Jayakumar S. Patil, representing the petitioner, argued that Nirmiti Kendra is an autonomous private society governed by its own rules. He asserted that since it is not a "Public Authority," it has no obligation to furnish information under the RTI Act, and the Information Commission's order was unsustainable.

• Respondents' Counter-Arguments: Counsel for the respondents, including the State Information Commission and the original RTI applicant, vehemently opposed the petition. They argued that the Nirmiti Kendra is unequivocally a "Public Authority" based on two key criteria under Section 2(h) of the RTI Act: control and substantial financing by the government.

  They submitted that the Kendras were established through a Government Order initiated by the Rural Development and Panchayath Raj Department. Furthermore, its governing body is composed almost entirely of high-ranking government officials, including the CEO of the Zilla Panchayat as Chairman and the Deputy Commissioner as a member, demonstrating complete government control. They also highlighted that its funding comes from government bodies like HUDCO and its primary function is to execute public works contracts for the State.

High Court's Decisive Analysis

Justice Suraj Govindaraj framed a single crucial question for determination: "Whether the Nirmiti Kendra would be a Public Authority in terms of Section 2 (h) of the Right to Information Act, 2005?"

The Court meticulously examined the genesis and operational structure of Nirmiti Kendras. It noted that their establishment was a direct result of a Government of Karnataka initiative to promote low-cost housing technology, with funding routed through government-affiliated entities.

The judgment emphasized the composition of the Kendra's governing body as a clear indicator of state control. The Court observed:

"The general body of the Nirmiti Kendra consists of all the top officers of each District, and the day-to-day activities of the Nirmiti Kendra are run by officers belonging to the State Government... Thus, it is clear that Nirmathi Kendra is under the complete control of Government servants."

Regarding funding, the Court found that funds from HUDCO and other government institutions for the implementation of public works established a clear case of substantial financing.

The Final Verdict

Answering the central question in the affirmative, the Court held that the Nirmiti Kendra is a "Public Authority" under the RTI Act, as it is both controlled and substantially financed by the government.

The Court did not stop at dismissing the petition. It strongly rebuked the stance taken by the Nirmiti Kendra's officials, stating:

"It is not expected of a Governmental authority and the officers of the Nirmathi Kendra, who are Government officers, to have taken such a stand that a Nirmathi Kendra would not come within the purview of the RTI Act... The attempt made by the officers of Nirmathi Kendra to suppress such transparency leaves much to be desired and does not inspire confidence."

Consequently, the writ petition was dismissed, and the Court imposed costs of Rs. 50,000, payable to the Karnataka State Legal Services Authority. The ruling reaffirms the broad scope of the RTI Act and sends a clear message that organizations operating with government control and public funds cannot evade public accountability by claiming a "private" status.