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Saturday, February 18, 2017

Co Operative Societies Are Bound To Supply Information Under RTI - Bombay HC

In a recent land mark development Nagpur bench of Bombay high court has ruled that urban cooperative   banks,   cooperative   financial institutions,   Patpedhis   and   other   cooperative societies   are bound to supply information under Right to information act  ( RTI) . After supreme court’s order in Thalappalam Ser.Coop.Bank Ltd.vs State Of Kerala  all the public authorities and PIO’s  I were blatantly saying that RTI act was not applicable to co operative societies.Actulally even in Thalappalam case the apex in paragraph 52 of its judgment had categorically said that the PIO of Registrar of Cooperative Societies is duty bound to supply  the information which his department can have access under the Cooperative Societies Act from a Society . But even then PIO’s and co operative societies were denying the information sought under RTI.





The Bombay high court in it judgement ha categorically said that “The   provisions   of   the   Maharashtra Cooperative   Societies   Act   if   read   with   the definition   of   information   given   in   section   2(f) of the Act, it can  be said that everything which is   mentioned   in   the   definition   of   information needs   to   be   supplied   by   the   cooperative institution   to   the   authority   created   under   the Cooperative   Societies   Act.  The   definition   of 'Public   Authority'   given   in   section   2(h)   shows that such public authority can be created by any law made by the State Legislature. It is already observed that the officers like Registrar and his subordinate   officers   are   appointed   under   the Cooperative  Societies  Act   and   they   have   the control   over   the   aforesaid   things.”

The court also observed that cooperative   institutions,   are   registered   under the Maharashtra Cooperative Societies Act, 1960. They are bodies created by the statute. But right from the registration till the liquidation there is   control   over   these   institutions   of   the authority   created   under   the   same   Act.

The petitioner  the association of Jalgaon Zilla Urban Cooperative Banks, Credit Societies   and   other   financial   institutions registered   under   the   Maharashtra   Cooperative Societies Act 1960 had filed a petition requesting court to Hold   and   declare   that   the   urban cooperative   banks,   cooperative   financial institutions,   Patpedhis   and   other   cooperative societies   which   are   registered   under   the Maharashtra Cooperative Societies Act 1960, are not the public authorities within the meaning of Section 2(h) of the Right to Information Act. Their contention was that in view of the provision  of section   34A   of   the   Banking Regulation Act, 1949 these institutions   were not bound to disclose certain information  which, according to them, was confidential in nature. It was  also contented that   those   institutions   were not   receiving   financial   aid   from   the   Government directly or indirectly and so the provisions of the Act cannot be made applicable to them


Petitioners had also requested High Court to restrain   the   officers   of   the cooperative   department   and   their subordinates from supplying any information to the   members   or   general   public,   which   is, according to  the said  societies  is confidential  in the commercial  interests  of the said societies and for that purpose issue necessary orders.


The Bombay High court denying all the reliefs claimed by petitioners also referred to  apex courts views  in jayantilal mestry case in which the supreme court had said that RBI was supposed to uphold public interest and not the interest of individual banks. RBI is clearly not in any fiduciary relationship with   any   bank. 

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