Confusion abounds: Now HC Bench says co-ops fall under RTI

Last week judgment of the Aurangabad Bench of the Bombay High Court, as reported by RTI activist Vinita Deshmukh in Moneylife has added to the confusion over the issue if cooperatives fall under RTI.

According to Moneylife the court reiterated that urban cooperative banks, cooperative financial institutions and other cooperative societies are bound by the Act that Cooperative institutions are bodies created by the statute. Right from the registration till the liquidation there is control over these institutions by the authority created under the same Act.

The High Court observation came in response to a petition filed by the Association of Jalgaon Zilla Urban Cooperative Banks, Credit Societies and others.

Responding to the issue columnist I C Naik has more than once said “ In its Order dated 7 October, 2013 the Supreme Court in Thalappalam Ser.Coop.Bank Ltd.& … vs State Of Kerala & Ors. : CIVIL APPEAL NO. 9017 OF 2013 at Para 54 reproduced below basis of determining whether a Cooperative Society/Bank is covered by the RTI Act.

54.We, therefore, hold that the Cooperative Societies registered under the Kerala Co-operative Societies Act will not fall within the definition of “public authority” as defined under Section 2(h) of the RTI Act and the State Government letter dated 5.5.2006 and the circular dated 01.06.2006 issued by the Registrar of Co-operative Societies, Kerala, to the extent, made applicable to the societies registered under the Kerala Co-operative Societies Act would stand quashed in the absence of materials to show that they are owned, controlled or substantially financed by the appropriate Government. Appeals are, therefore, allowed as above, however, with no order as to costs.”

On the other hand, the Aurangabad bench of High Court observed” The authority steps in to take decisions on the rights of the members. The authority has control over the manner in which funds are invested or over the distribution of the funds. Such institutions cannot act independently and the apex bodies are created for such institutions.”

Naik says “ its a matter of fact as to whether the cooperative/bank under question is owned, controlled or substantially financed by the appropriate Government which will answer the question.

If we go earlier in 2014 echoing the UPA govt stance, the NDA government also ruled out bringing co-operatives under the ambit of the Right to Information Act.

“The government is not planning to bring in any amendment in the Right to Information Act to include co-operative societies under it”, the Lok Sabha was informed by the minister of state for personnel Jitendra Singh to a question from a member seeking to know whether the government is planning to amend the RTI Act and bring co-operative societies under the transparency law.

The Minister also said “Co-operative societies do not fall within the ambit of Right to Information Act, the Supreme Court had ruled last year while quashing a Kerala government circular to bring all such societies within the scope of the transparency law.”

Further adding to the confusion, the Haryana state information commission said in 2015”all cooperative banks will be considered public authority and will therefore come under the ambit of the right to information Act. A larger bench of the commission pronounced this opinion reading a judgment delivered by the Supreme Court in 2013.

According to the commission, as the cooperative bank’ funds are raised through debentures, Nabard is their main source of finance and their borrowings are guaranteed by the state govt; they are covered under the right to information Act.