Financial Arrangement with SECL Deemed Insufficient for Classification as Substantially Financed by Government
In a significant ruling, the Chhattisgarh High Court has determined that the DAV Public School, managed by the Dayanand Anglo Vedic College Trust & Management Society, does not qualify as a "public authority" under the Right to Information Act, 2005. This decision came on June 18, 2026, in response to multiple writ petitions filed by the institution challenging orders from the Central Information Commission.
The case revolved around whether the DAV Public School could be considered a public authority due to its financial dealings with the South Eastern Coalfields Limited (SECL). According to the Memorandum of Understanding between the school and SECL, the latter compensates for the deficit arising from concessional fees provided to the children of SECL employees. The school argued that this arrangement was purely contractual and did not amount to "substantial financing" by the government, a requirement under Section 2(h) of the RTI Act for an entity to be classified as a public authority.
Justice Amitendra Kishore Prasad, presiding over the case, concurred with this argument. The Court emphasized that the financial arrangement with SECL was limited and compensatory, not constituting substantial financing that would render the school dependent on SECL or governmental support. The judgment underscored that DAV institutions are private, unaided bodies with independent financial and administrative structures, and the limited association with SECL does not alter their private character or bring them within the ambit of Article 12 of the Constitution of India.
The Court further quashed the proceedings and penalties imposed on the principal of the school, who had been erroneously deemed a Public Information Officer under the RTI Act. The judgment clarified that the provisions of the RTI Act, including the designation of Public Information Officers, apply strictly to entities classified as public authorities, a category that does not include the petitioner institution.
This decision highlights the judiciary's stance on maintaining the distinction between private educational institutions and government-controlled bodies, reinforcing the autonomy of private entities in the educational sector. The ruling also serves as a precedent in clarifying the criteria for what constitutes substantial financing under the RTI Act, thereby influencing future cases involving similar contractual arrangements between private institutions and government bodies.
Bottom line:-
DAV Public School run by Dayanand Anglo Vedic College Trust & Management Society is not a "public authority" under Section 2(h) of the RTI Act, 2005. The financial arrangement with SECL and limited governmental involvement does not satisfy statutory requirements of ownership, control, or substantial financing.
Statutory provision(s): Right to Information Act, 2005 Sections 2(h), 5(4), 5(5); Constitution of India, 1950 Article 12
DAV Public School v. Central Information Commission, (Chhattisgarh) : Law Finder Doc id # 2926631
