Bombay HC Clarifies RTI Act Applicability to Public Trusts Receiving State Grants

People Welfare Society Vs State Information Commissioner (Bombay High Court)

Background: The question before the Full Bench of the High Court of Judicature at Bombay, Nagpur Bench, involved determining the obligations of a public trust registered under the Maharashtra Public Trusts Act 1950, which operates an institution receiving state grants, under the Right to Information Act 2005 (RTI Act). The bench comprised Justices Avinash G. Gharote, Anil S. Kilor, and Urmila Joshi-Phalke, and the verdict was delivered on March 1, 2024.

Crux of the Issue:   Central to the debate was whether public trusts, specifically those running institutions funded by state grants, qualify as “public authorities” under the RTI Act and are, therefore, required to disclose information upon request.

Decision Given by the Court:   The court concluded that public trusts themselves do not inherently qualify as “public authorities” as defined under Section 2(h) of the RTI Act unless there is direct substantial finance or control by the government for their establishment or operations. This distinction extends to the educational or other institutions run by such trusts, which may be considered “public authorities” if they receive substantial financial support from the state. The determination of what constitutes “substantial finance” is to be made by the Information Commissioner on a case-by-case basis.

 Legal Principles Applied: 

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