Cooperative societies do not fall under ambit of RTI Act, rules Madras High Court

The Madras High Court has ruled that cooperative societies registered under state laws are not considered "public authorities" under the Right to Information Act. This decision effectively exempts these financial institutions from RTI disclosure requirements, overturning a previous directive by the Tamil Nadu Information Commission. The court relied on established precedents to confirm that cooperative societies operate as autonomous bodies rather than entities performing public functions, thereby placing them outside the scope of the 2005 Act. This ruling is significant for transparency in rural finance, as it limits the ability of citizens to access detailed loan data from cooperative credit societies. The case originated from an RTI application seeking evidence of potential fraud involving fake property documents and unjustified loan waivers. By denying access to these records, the judgment restricts mechanisms for public accountability regarding the distribution of government subsidies and agricultural loans, potentially hindering efforts to verify if benefits reach marginal farmers. For the open data community, this legal stance creates a substantial barrier to data accessibility and civic monitoring. Since cooperative societies manage vast amounts of public funds and agricultural credit, their exclusion from RTI frameworks means critical socioeconomic data remains opaque. This precedent reinforces the distinction between private-like autonomous bodies and government entities, complicating efforts to advocate for broader transparency mandates in sectors that blend public service with cooperative structures.

Source: thehindu.com
Published on 2024-06-09

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