TMI Blog2013 (6) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... please provide complete details including action taken by party and others against such persons, Has B.J.P. suggested any proposals to Union government /Election Commission towards electoral reforms?, If yes, please provide complete details including reply received from concerned ones if any, File notings on movement of this RTI petition and on all aspects mentioned in this RTI petition - whether political parties being questioned here are public authorities under section 2(h) of the RTI Act - Held that:- As relying on Indian Olympic Association v. Veeresh Malik and Ors [2010 (1) TMI 978 - DELHI HIGH COURT] for a private entity to qualify to be a public authority, substantial financing does not mean majority financing. What is important is that the funding by the appropriate Government is achieving a "felt need of a section of the public or to secure larger societal goals". Large tracts of land in prime areas of Delhi have been placed at the disposal of the Political Parties in-question at exceptionally low rates. Besides, huge Government accommodations have been placed at the disposal of Political Parties at hugely cheap rates thereby bestowing financial benefits on them. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ist of promises highlighted in BJP election manifestoes but remained unfulfilled after BJP came to power. 4. Outline of receipts (separately by cash/online/cheque etc) by BJP in last two years separately for each year for which updated account information may be there. 5. Outline of payments (separately by cash/online/cheque etc.) made by BJP in last three years separately for each year for which updated account information may be there. 6. Is it compulsory for every BJP legislature either at Centre or in States or in civic bodies etc to contribute towards party funds? 7. If yes, please provide complete and detailed information including also defaulters in making such contributions to party fund in last three years. 8. Is BJP aware of any of its legislatures (both at Centre and in States)/civic body member etc. involved in corrupt and other malpractices in last three years? 9. If yes, please provide complete details including action taken by party and others against such persons. 10. Has B.J.P. suggested any proposals to Union government /Election Commission towards electoral reforms? 11. If yes, please provide complete details including reply received from concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainant as under: "It is very important to mention here that NCP is a non-government organization. Hence, we do not have much more resources nor surplus staff to expedite unusual work, which is not in our routine job. We generate funds from the membership drive and through other resources also, i.e. voluntary contributions from the well-wishers, and followers etc. State units of NCP have major role in membership drive from which we are getting funds in lakhs. State units of NCP at district level, block level and panchayat level organize membership camps frequently and every two years, we file the details regarding our membership and all necessary requisites in Election Commission and other government authorities. However, I would like to inform you that ours is a National Party duly recognized by Election Commission of India and that from the day of inception of our party, we have been regularly filing our returns to the Income Tax authorities and also to the Election Commission of India along with whatever voluntary contributions received. It is pertinent to mention here that our all obligation towards authorities are up to date. If you feel like, you ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Shri S.C. Agrawal. 2. Shri Anil Bairwal, along with Shri Jagdeep S. Chhokar, Ms. Shivani Kapoor, Shri Manoj Kumar Shri A.K. Aneja. Respondents: 1. Advocate Shubhashis R. Soren for BJP. 2. Shri S. Ramachandran Pillai of CPI(M). 3. Advocates Shail Kumar Dwivedi G.V. Rao for BSP. 4. Shri Chandan Bose, PRO, NCP and Advocate Amit Anand Tiwari for NCP. 15. Shri S.C. Agrawal has filed a written representation before the Commission in which he has vehemently pleaded for declaring Political Parties as public authorities under section 2(h) of the RTI Act. The salient points made in his representation are enumerated herein-below :- (i) The Political Parties hold constitutional status and wield constitutional powers under the Tenth Schedule of the Constitution in as much as they have the power to - "(a) disqualify legislators from Parliament and State Assemblies; (b) bind legislators in their speeches and voting inside the house; (c) decide what laws are made; (d) decide whether Government remains in power or which Government should come to power; (e) decide public policies th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otted on 24.11.1967 Plot Nos. 10, 11, 12 13 at Kotla Road Area = 2535 sq. m. allotted on 11.12.2008. 4. Samajwadi Party Plot No. 1, Vasant Kunj Institutional Area, New Delhi Area = 1 acre, Allotted on 21.1.2009. 5. Communist Party of India Plot No. 15, Kotla Marg, New Delhi Area = 0.3 acres. Allotted on 2.12.1967 6. Bharatiya Janata Party (National Level) Between Dr. Rajendra Prasad Road and Raisina Road, New Delhi. Area = 1.87 acres. Allotted on 8.3.2001. 7. Janata Dal(United) Plot No.4, Vasant Vihar Institutional Area, New Delhi Area = 2000 sq. m. allotted on 27.4.2010 8. Bharatiya Janata Party (Delhi State) Alternative allotment at Plot No.4 5, Kotla Road, New Delhi Area = 1060.80 sq. m. allotted on 12.5.2010 9. All India Anna Dravida Munnetra Kazhakham Plot No. 13 25, Pushp Vihar, M.B. Road, Saket, New Delhi, Area = 1008 Sq. m. Allotted on 30.7.2010 10. Delhi Pradesh Congress Committee Plot No. 2, Rouse Avenue Institutional Area Area = 1127 sq. yds. Allotted on 15.5.1987 11. All India Trinam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23.60 0.80 39.84 CPI(M) 6.98 4.62 6.53 18.13 CPI 0.01 0.21 0.02 0.24 NCP 0.90 0.68 8.06 9.64 (Source : Compilation from copies of Income Tax Returns received from Income Tax Department under RTI Act) (ii) State has been indirectly financing various Political Parties by way of free air time on All India Radio. As per his calculation, the amount spent by the State on the Political Parties under this Head is as follows: S.No. Name of the party Time allotted for broadcast at the AIR during LS'09(Min) for Political Parties Rate charged by AIR in time category-3 for every 10 seconds Amount spent by the State for AIR (Rs lakhs) 1. BJP 140 800 6.72 2. BSP 70 800 3.36 3. CPI 50 800 2.40 4. CPI(M) 70 800 3.36 5. INC 160 800 7.68 6. NCP 50 800 2.40 7. RJD 55 800 2.64 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Sq.Fts. (1 sq.m.=10.76 Sq. fts, 1 sq. yd.= 9 sq.fts., 1 Acre= 4840 sq.yds.) Current Market Value of the Allotteed Plots of Land (based on Real Estate Consulting Reports @ Rs. 60,000 per sq. ft(Rs.in Crores) Current Market Value of these allotted plots (Party-wise) (R In crores) Current Market Value of these allotted plots (Party-wise) (R In crores) (A) (B) (C=B*60,000) INC 1. Plot at Dr. Rajinder Prasad Road, New Delhi (Allotted on 08.09.1975) 9518.42 sq yds. 85665.78 513.99 1036.41 2. Pocket 9A, Kotla Road, New Delhi (allotted on 19.11.2007 8092 sq. m. 87069.92 522.42 BJP 1. Between Dr. Rajendra Prasad Road and Raisinha Road (allotted on 08.03.2001) 1.87 acres 81457.20 488.74 557.23 2. Plot No.4 5 Kotla Road New Delhi (allotted on 12.05.2010) 1060.80 sq.m. 11414.21 68.49 CPI(M) Plots No.27, 28 29 at Market Road Institutional Area, New Delhi(allotted on 11.04.1967) 1197 sq.m. 12879.72 77.28 240.94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amplification of his above broad submission, he has advanced the following arguments:- (i) Tenth Schedule to the Constitution vests tremendous powers with the Political Parties in as much as they can oust an elected member whether MP or MLA - from out of the Party if he steps out of the party line. The vast power of the Political Parties has been recognised in this Schedule and, therefore, if purposive interpretation of the Tenth Schedule is made, then the Political Parties can be deemed to be covered under Section 2(h) of the RTI Act. (ii) As per Section 29C of the Representation of People Act, 1951, all donations of and above Rs. 20,000/- made to Political Parties are required to be reported to the Income Tax Department. This obligation cast on the Political Parties points towards their public character. (iii) By virtue of powers conferred on it under Article 324 of the Constitution read with section 29A of the Representation of People Act, 1951, and Rules 5 and 10 of the Conduct of Election Rules, 1961, and other powers vested in it, the Election Commission of India made and promulgated the Election Symbols (Reservation and Allotment) Order, 1968. Under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for accountability and transparency in the functioning of the Political Parties. It is his contention that transparency in the functioning of Political Parties was recommended by the Law Commission of India in their 170th Report on "Reform of Electoral Laws (1999)". The relevant para of the Law Commission's report as extracted by him is given below :- "On the parity of the above reasoning, it must be said that if democracy and accountability constitute the core of our constitutional system, the same concepts must also apply to and bind the Political Parties which are integral to parliamentary democracy. It is the Political Parties that form the Government, man the Parliament and run the governance of the country. It is therefore, necessary to introduce internal democracy, financial transparency and accountability in the working of the Political Parties. A political party which does not respect democratic principles in its internal working cannot be expected to respect those principles in the governance of the country. It cannot be dictatorship internally and democratic in its functioning outside". (emphasis added by the complainant) 23. Shri Bairwal has also relied on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , their means of funding is a democratic imperative, and, therefore, is in public interest". 25. Another strand of his submissions is that the Public Authority, as defined under section 2(h) of the RTI Act, is a broader term than the 'State' as defined under Article 12 of the Constitution. In other words, it is possible that an entity may fall short of being 'State' and yet may be a 'Public Authority' under the RTI Act. In fact, 'Public Authority' and the 'State' are different and distinct from each other. Shri Bairwal has relied on para 25 of the judgment of Punjab and Haryana High Court in WP(C) No. 19224/2006 along with 23 other cases as extracted below :- "25. Above-all, the deep and pervasive control as required under Article 12, is not required and essential ingredient for invoking the provisions of RTI Act. The primary purpose of instrumentality of the State is in relation to enforcement of the fundamental rights through Courts, whereas the RTI Act is intended to achieve, access to information and to provide an effective framework for effecting the right to information recognized under Article 19 of the Constitution. The complainants are not claiming any kind of mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n particular, to ensure that sensitive information is kept out of bounds have also been accommodated under the Act." 27. Yet another submission of the complainant is that the Political Parties are being indirectly financed by the State in various ways viz. allotment of land, free of cost, or at nominal rates and exemptions from the Income Tax etc. Paras 3.1 to 3.7 of his representation are extracted below :- "3.1 All Political Parties claim to work for the people and in the national interest. Income tax returns of Political Parties obtained by ADR using the RTI Act reveal that on an average only about 20 per cent of the income of Political Parties comes from donations that they disclose to the Election Commission under section 29C of the Representation of People Act. The sources of the remaining 80 per cent of the income are shrouded in mystery. This is what gives rise to all kinds of speculation about the pernicious influence of illegal money. 3.2 After various RTI applications filed to the central agencies, it was discovered that Political Parties enjoy a number of "facilities" provided to them by the government. This is a clear instance of being "financed indirec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State Government. The fact that the valuable land upon which the Club was constructed, belongs to the Government and no rent/lease is paid by it to the Government shows that there is a substantial financial assistance by the State to the Club. The cost of prime land provided to the club would be much more than its normal revenue expenditure. Apart from land provided for construction of the club building, the Government has also incurred a part of expenditure on its construction . In my view, the SIC has recorded the correct finding of fact based on the material on record, by virtue of impugned order dated 8.7.2010. 3.6.2 Land and Income Tax concessions : A directly relevant case here, dealing with both, land and income tax, was decided by the Central Information Commission on 11.01.2012. It was Mr. Tilak Raj Tanwar v. Government of NCT of Delhi, File No. : CIC/AD/A/2011/001699. After considering all aspects of the issue, the Commission decided as follows : "12. The Commission while relying upon the various decisions given hereinabove is convinced that the Mount St. Mary's School may be considered as being "substantially financed" by the appropriate Government, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory status. It is his contention that incorporation of Articles 102(2) and 191(2) through the 42nd Amendment and the 10th Schedule to the Constitution has given constitutional status to the Political Parties. According to him, it is a fallacy to say that any individual can form a political party. A body or entity does not become a political party in the legal sense until it is registered by the Election Commission of India under section 29A of the Representation of the People Act, 1951, and this registration lends it the colour of Public Authority. 29. Lastly, the complainant has also contended that in exercise of its powers, the Election Commission of India under Elections Symbols (Reservation and Allotment) Order, 1968, promulgated under article 324 of the Constitution and Rules 5 10 of the Conduct of Election Rules, 1961, grants symbols to various Political Parties for election purposes for the recognition of Political Parties and can suspend or withdraw recognition of recognized Political Parties on their failure to observe model code of conduct or not following the lawful directions and instructions of the Commission. It is indicative of the public character of the Politi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, 1960. Similarly, tax exemption under section 13A of the IT Act is subject to the compliance of the provisions of Income Tax Act. Further more, allotment of government/public land to the Political Parties on concessional rates does not cloth the party into a public authority within the meaning of section 2(h) of the RTI Act. Paras 04, 08 10 of his representation are extracted below:- "4. That at the outset, I submit that the complainant has had no legal right to file application under Section 6(1) of the Right to Information Act, 2005, against the answering respondent for the reason that the Political Parties are not the public authorities under Section 2(h) of the Right to Information Act, 2005. The Bahujan Samaj Party being one of the six national Political Parties duly recognized by the Election Commission of India is, therefore, not a 'Public Authority' within the meaning of Section 2(h) of Right to Information Act, 2005. Therefore, the present complaint petition is liable to be dismissed. ** ** ** - That I hereby submit that the BSP is a political party. It has not been notified as a public authority by means of any noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 29A of the Representation of People Act. This is a statutory requirement and cannot be construed as substantially financing. Similarly, allotment of party office to NCP at economical rates cannot be construed as substantial financing in as-much-as the Government makes this facility available not only to Political Parties recognized by the Election Commission but also to other segments of population such as journalists etc. Further more, it is Shri Tiwari's contention that exemption from Income Tax granted under section 13A of the Income Tax Act also does not mean that the NCP is substantially financed by the Government. He has given the example of Income Tax exemption to the farmers but by virtue of this, the farmers cannot be designated as public authority under section 2(h) of the RTI Act. 35. Without prejudice to the above arguments, Adv. Tiwari has argued that even if it is admitted that the Government is funding the Political Parties in the manner mentioned herein above, it cannot be said to be 'substantial financing'. It is his contention that the NCP receives less than 1.55% of its total funding from the Government and, therefore, cannot be construed as public authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clare such elected Member to be disqualified or otherwise. (ii) No doubt, Political Parties have played a significant role in public life but public interest is not the criterion for declaring a body or institution as public authority under section 2(h) of the RTI Act. (iii) If Political Parties are declared to be public authorities,, then they will be flooded with applications by pseudo information seekers to maliciously engage the party workers only in responding to the RTI applications thereby causing detriment to their political functioning. The law laid down by the High Court in the Indian Olympic Association case, Commonwealth Games Committee case and Sanskriti School case is not applicable to the Political Parties in as much as there was evidence of huge direct financing by the Government to these bodies/entities which is not true in case of Political Parties. (iv) Public interest argument is not valid in case of Political Parties under section 11 of the RTI Act. If this argument is accepted, then the identities of the contributors would have to be disclosed and the contributors may not like this to happen. Such disclosure may expose them to harassment a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 to 2011-12." 40. Only two parties viz. NCP and CPI(M) chose to respond to the Commission's notice. The other Political Parties simply ignored it. 41. Shri S.R. Kohli, Parliamentary Secretary, NCP, in letter dated 22.11.2012 informed the Commission that his party was not covered under section 2(h) of the RTI Act and, therefore, it was not bound to supply any information. 42. However, Shri Prakash Karat, General Secretary, CPI(M) wrote a detailed letter dated 21.11.2012 to the Commission in which he gave details of the two buildings allotted to CPI(M) viz : A.K. Gopalan Bhawan - Plot Nos. 27, 28 29 at Market Road, measuring 1197.33 Sq Mts. allotted on 22.11.1983 and Kotla Road Plot Nos. 10, 11, 12 13, measuring 2534.46 sq. mts., allotted on 11.12.2008. As regards A.K. Gopalan Bhawan plot, he informed the Commission that the Party had deposited security amount of Rs. 31.42 lacs with licence fee of Rs. 78,574/-. As regards Kotla Road plot, the Party had paid premium of Rs.53.80 lacs with ground rent of Rs. 1,34,512/- per annum. Shri Karat has also clarified that the Party has only lease-hold rights on the plots under reference. Shri Karat has also given details of the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kunj, Plot No.1 1 acre 5. Communist Party of India Kotla Road, Plot No.15 0.3 acre 6. Bhartiya Janata Party (National Level) Between Dr. Rajinder Prasad Road-Raisina Road 1.87 acre 7. Janata Dal(United) Vasant Vihar, Plot No.4 2000 sq. mts. 8. Bhartiya Janata Party (Delhi State) Kotla Road, Plot No.4 5, alternative 1060.80 sq. mts. 9. All India Anna Dravida Munnetra Kazhakham Pushp Vihar, M.B. Road, Saket Plot No. 15 22 1008 sq.mts. 10. Delhi Pradesh Congress Committee Rouse Avenue, Plot No.2 1127.78 sq.mts. 11. All India Trinamool Congress DDU Marg, Plot No.2 3 1000 sq. mts. It is informed that the information provided in the Table-I is factually correct and the allotments were made to these Political Parties on institutional land rates of this office. Copies of allotment letters in respect of above mentioned Political Parties are enclosed herewith." 45. The terms and conditions of allotment to AICC/INC are contained in the DL DO's letter dated 19.7.2007. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rti Lane -------- -------- Rs.1,550/- 48. Before proceeding further in this matter, it would be pertinent to have a look at the registration, recognition and functioning of Political Parties as per the existing law/rules. The following salient points need to be underlined :- * The Political Parties are registered with the Election Commission of India(ECI) under section 29A of the Representation of People Act, 1951. * For the purposes of R.P. Act and elections, an association/body gets the status of political party only on its registration with the ECI under section 29A. * Para 16A of the Election Symbols (Reservation Allotment) Order, 1968, empowers ECI to suspend or withdraw the recognition of a political party if it refuses to follow the lawful directions and instructions of the Commission or if it refuses to observe the provisions of the Model Code of Conduct. * As per Supreme Court judgment in Common Cause -Vs- Union of India (AIR 1996 SC-3081), ECI is empowered under Article 324 of the Constitution to require the Political Parties to submit details of expenditure incurred by them in connection with elections. * ECI has directed the P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents will do the same, the electorate, thereby, is enabled to vote as a mass and decision that would otherwise be chaotic, assumes some coherency and direction. ** ** ** What, at least, is certain, is that without parties there would be no means available to us of enlisting the popular decision in such a way as to secure solutions capable of being interpreted as politically satisfactory." 50. All modern democracies operate on a party system, some with two as in the USA and some others with multiple Political Parties like in India. The Political Parties mobilize public opinion around their ideologies and beliefs and contest elections to form government. No democracy can exist today without Political Parties. An ordinary citizen does not have direct access to the government except through his elected representative and cannot hope to be part of the government without being a member of a Political Party. His membership of a legislature depends on his membership of a Political Party to begin with. It is, thus, through the Political Parties that the citizens of a democracy operationalise the democratic state. This is precisely what Prof Laski ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, as the case may be, article 188. (2) An elected member of a House who has been elected as such otherwise than as a candidate set up by any political party, shall be disqualified for being a member of the House if he joins any political party after such election. (3) A nominated member of a House shall be disqualified for being a member of the House if he joins any political party after the expiry of six months from the date on which he takes his seat after complying with the requirements of article 99 or, as the case may be, article 188." ** ** ** 52. We may also take notice of certain statutory provisions in this regard. Section 29A of the Representation of People (RP) Act, 1951, empowers the Election Commission of India (ECI) to register Political Parties for the purposes of this Act. In other words, without such registration, a Political Party cannot participate in the electoral process. Sub section (1) of 29-A is extracted below :- "(1) Any association or body of individual citizens of India calling itself a political party and intending to avail itself of the provisions of this Part shall make an application to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons in excess of 20,000/- rupees received from non-Government companies; (e) that in exercise of its powers under Article 324 read with section 29A of the RP Act, 1951 , and rules 5 10 of the Conduct of Election Rules, 1961, the Election Commission has issued Election Symbols(Reservation Allotment) Order, 1968, under which election symbols are allotted to various National/State Political Parties; (f) that Election Commission can suspend or withdraw recognition of a recognized political party in the event of violation of provisions of Election Symbol(Reservation Allotment) Order, 1968; (g) that Central Information Commission's order dated 29.4.2008 directing the Political Parties to disclose their Income Tax Returns holds the field and is being complied with. (B) Financial (a) that the Land Development Office of the Ministry of Urban Development has allotted large tracts of land in Delhi to various Political Parties either free of cost or at concessional rates; (b) that the Directorate of Estates, Ministry of Urban Development, has allotted accommodation in Delhi to various Political Parties on rental basis at concessional rates; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me tax exemption on all their incomes. The other important benefit that accrues to these political parties on account of their recognition by the Election Commission of India as national level political parties is the common symbol on which their candidates can contest elections. Thus, if not strictly within the letter of this particular provision (d), but at least, in spirit, these political parties can be said to have been constituted by their registration by the Election Commission of India, a fact akin to the establishment or constitution of a body or institution by an appropriate government. 58. Having said this, the next classification under which these political parties can be placed is what is provided in section 2(h)(ii). According to this provision, any nongovernmental organisation which is substantially financed, directly or indirectly, by funds provided by the appropriate government would become a public authority for the purpose of the Right to Information Act. Now, the question is whether these political parties are being substantially financed, directly or indirectly, by funds provided by the appropriate government. Both the parties in this case have placed conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not take it out of the definition of 'public authority' under Section 2(h)(d)(i) of the RTI Act. " ** ** **" 61. It may now be pertinent to allude to certain decisions of the High Courts and this Commission in this regard:- (i) In Indian Olympic Association and others v. Veeresh Malik others (WP)(C) No. 876/2007 the Delhi High Court in its decision dated 7th January 2010, held that Indian Olympic Association is a public authority under section 2(h). The relevant paragraph is extracted below:- "Having regard to the pre-eminent position enjoyed by the IOA, as the sole representative of the IOC, as the regulator for affiliating national bodies in respect of all Olympic sports, armed with the power to impose sanctions against institutions - even individuals, the circumstance that it is funded for the limited purpose of air fare, and other such activities of sports persons, who travel for events, is not a material factor. The IOA is the national representative of the country in the IOC; it has the right to give its nod for inclusion of an affiliating body, who, in turn, select and coach sportsmen, emphasizes that it is an Olympi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociation (File No. CIC/LS/C/2009/900377), the Central Information Commission held Chandigarh Lawn Tennis Association to be public authority. Para 19 of the order is extracted below:- "19. The gravamen of the above judgments is that for a private entity to qualify to be a public authority, substantive financing does not mean 'majority' financing. What is important is that the funding by the appropriate Government is achieving a "felt need of a section of the public or to secure larger societal goals." The ratio of the above judgments, particularly of Delhi High Court, applies to the present case on all the fours. A huge property has been placed at the disposal of CLTA by the Chandigarh Administration at a notional rental of Rs.100/- per annum. Besides, grant of one lakh rupees was also given to CLTA in FY 2008-09. Concededly, CLTA fulfills the felt need of a section of the society by way of imparting training to the budding tennis players. It is, therefore, held that CLTA is a Public Authority." (v) In another decision dated 21.1.2011 in Pradeep Bhanot v. Chandigarh Club, Chandigarh (File No. CIC/LS/A/2010/001184), the Central Information Commission held that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t differential between the monthly rental being paid by the Chandigarh Club and the commercial rent that the premises could fetch in the open market (as estimated by the Finance Deptt), we are of the opinion that the Chandigarh Club is being indirectly financed by the Chandigarh Administration. In this view of the matter, we hold that the Chandigarh Club is 'public authority' u/s 2 (h) (ii) of the RTI Act. Hence, the club management is hereby directed to put in place a mechanism for servicing the RTI Act." (vii) Further-more, in Amrit Mehta v. India International Centre (File No. CIC/WB/A/2009/000965/LS) decided on 1.2.2011, the Commission held that India International Centre is a public authority under section 2(h). The broad facts in this case were that 4.69 acres of prime land was given on perpetual lease to IIC against deposition of Rs. 1,68,840/- as per agreement signed on 22.4.1960 between the President of India and IIC. The yearly rent payable by IIC to the Central Government was Rs. 8,442/- which has remained unchanged during the last five decades. In the facts of the case, the Commission had held as follows :- "XVIII. In view of the above discussion, it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of Rs. 65 lacs per acre and 1-0,000 sq. mts of land at a highly subsidised nominal ground rent of Rs. 10/- per Annum by DDA. The School is under the governance, control and regulation of the Delhi Schools Education Act 1973, Rule 50 whereof mandates disclosure of information in the form of reports etc. to the Director of the Directorate of Education, the Administrator and concerned authority from the Central Government, as already discussed above. The Directorate of Education has appointed two nominees in the key Managing Committee of the School thereby ensuring position of power of managing affairs of the School and having control over the Respondent School." 62. The question before the Commission is whether INC/AICC, BJP, CPI(M), CPI, NCP and BSP can be held to be Public Authorities under section 2(h) of the RTI Act. The complainants have adduced the following three principal grounds to persuade the Commission to hold that the aforesaid Political Parties are Public Authorities viz:- (i) Indirect substantial financing by the Central Government; (ii) Performance of public duty by the Political Parties; and (iii) Constitutional/legal provisions vesting Poli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strongly believe that the rent being charged from the Political Parties does not reflect the true rental value of these properties. This arrangement also contributes to the indirect financing of Political Parties. 68. Of the various benefits that the central government extends to these political parties, the total exemption from payment of income tax on their incomes, very obviously, constitutes the most important benefit. Section 13 A of the Income Tax Act reads as follows: "Any income of a political party which is chargeable under the head income from house property or income from other sources or capital gains or any income by way of voluntary contributions received by a political party from any person shall not be included in the total income of the previous year of such political party: Provided that - (a) such political party keeps and maintains such books of account and other documents as would enable the assessing officer to properly deduce its income therefrom; (b) in respect of each such voluntary contribution in excess of Rs. 20,000, such political party keeps and maintains a record of such contribution and the name and address of the perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome tax exemption cannot be said to be a form of financing. In support of this argument, they have submitted that such concessions and exemptions are routinely extended to many charitable and non-profit non-governmental organisations across the country. Therefore, according to them, if those numerous nongovernmental organisations are not considered to be public authorities, there is no reason why the political parties should be considered so. We cannot accept this argument. There is a great difference between the tax exemption given to charitable and non-profit nongovernmental organisations and that given to the political parties. The exemption given to the former is strictly conditional: full or part exemption is given to these organisations only if they pursue the objectives outlined in their respective charters, be it the memorandum of association and bye-laws in case they are societies or the trust deeds, in case they are private trusts. There are other strict conditions laid down in the Income Tax Act which the assessee must comply with. In other words, if any of these non-governmental organisations are found not to be pursuing their objectives or spending the tax exempt amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stantially financed; (ii) Non-Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government." are to be constituted under, or established by a notification, issued by the appropriate government. If, indeed, such were the intention, sub-clause (i) is a surplusage, since the body would have to be one of self government, substantially financed, and constituted by a notification, issued by the appropriate government. Secondly - perhaps more importantly, it would be highly anomalous to expect a 'non-government organization" to be constituted or established by or under a notification issued by the government. These two internal indications actually have the effect of extending the scope of the definition "public authority"; it is, thus, not necessary that the institutions falling under the inclusive part have to be constituted, or established under a notification issued in that regard. Another significant aspect here is that even in the inclusive part, Parliament has nuanced the term; sub-clause (i) talks of a "body, owned, controlled or substantially financed" by the appropriate government (the subject object relationship ending w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in their management, or administration by state or public agencies." 74. As to the question of 'substantial financing', the Delhi High Court in the said judgment has held that 'majority' test is not appropriate to decide whether or not an Organisation is substantially financed, directly or indirectly, by the appropriate Government. It has been observed that financing in percentage terms in relation to the total budget of the body is not important. To quote:- "60. This court therefore, concludes that what amounts to "substantial" financing cannot be straight-jacketed into rigid formulae, of universal application. Of necessity, each case would have to be examined on its own facts. That the percentage of funding is not "majority" financing, or that the body is an impermanent one, are not material. Equally, that the institution or organization is not controlled, and is autonomous is irrelevant; indeed, the concept of non-government organization means that it is independent of any manner of government control in its establishment, or management. That the organization does not perform - or pre-dominantly performs - "public" duties, too, may not be material, as long as the obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unding by the appropriate Government is achieving a "felt need of a section of the public or to secure larger societal goals". The ratio of the above judgments, particularly of Delhi High Court, applies to the present case. Large tracts of land in prime areas of Delhi have been placed at the disposal of the Political Parties in-question at exceptionally low rates. Besides, huge Government accommodations have been placed at the disposal of Political Parties at hugely cheap rates thereby bestowing financial benefits on them. The Income Tax exemptions granted and the free air time at AIR and Doordarshan at the time of elections also has substantially contributed to the financing of the Political Parties by the Central Government. We have, therefore, no hesitation in concluding that INC/AICC, BJP, CPI(M), CPI, NCP and BSP have been substantially financed by the Central Government and, therefore, they are held to be public authorities under section 2(h) of the RTI Act. Performance of Public Duty 77. The Political Parties are the life blood of our polity. As observed by Laski "The life of the democratic state is built upon the party system". Elections are contested on party basis. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clude transparency of a candidate who seeks election or re-election. In a democracy, the electoral process has a strategic role. The little man of this country would have basis elementary right to know full particulars of a candidate who is to represent him in Parliament where laws to bind his liberty and property may be enacted." 81. The National Commission to Review the Working of the Constitution in its report submitted in March 2002 has recommended that Political Parties as well as individual candidates be made subject to a proper statutory audit of the amounts they spend. In Common Cause (A Registered Society v. Union of India) (AIR 1996 SC 3081), the Supreme Court has dealt with the income and expenditure incurred by the Political Parties and has laid emphasis on transparency on election funding. 82. The people of India must know the source of expenditure incurred by Political Parties and by the candidates in the process of election. These judicial pronouncements unmistakably commend progressively higher level of transparency in the functioning of Political Parties in general and their funding in particular. 83. We may also add that the preamble to the Constitution of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the ambit of section 2(h). 86. We find the above submissions quite compelling and unerringly pointing towards their character as public authority. Stand of Political Parties 87. It may be recalled that the INC/AICC and the BJP have made a bland assertion that they are not Public Authorities under the RTI Act. CPI(M) has disclosed some information to the Commission regarding allotment of land to it by the Central Government on certain terms and conditions but has not conceded that it is Public Authority under section 2(h) of the RTI Act. The contentions of the above parties have to be rejected in the light of findings recorded herein above. 88. Interestingly, the CPI office bearers have taken a contradictory stand. While Shri A.B. Bardhan in his letter dated 21.3.2011 addressed to Shri Anil Bairwal has stated that CPI is a Public Authority under section 2(h), on the other hand Shri Sudhakar Reddy, vide letter dated 24.9.2012 sent to the Commission, has taken the stand that Political Parties do not fall in the ambit of section 2(h). As the stand of CPI is confusing, it does not call for any comments. 89. However, the submissions made by Shri A.A. Tiwari, counsel for Nati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment under section 2(h)(ii) of the RTI Act. The criticality of the role being played by these Political Parties in our democratic set up and the nature of duties performed by them also point towards their public character, bringing them in the ambit of section 2(h). The constitutional and legal provisions discussed herein above also point towards their character as public authorities. The order of the Single Bench of this Commission in Complaint No. CIC/MISC/2009/0001 and CIC/MISC/2009/0002 is hereby set aside and it is held that AICC/INC, BJP, CPI(M), CPI, NCP and BSP are public authorities under section 2(h) of the RTI Act. 93. The Presidents, General/Secretaries of these Political Parties are hereby directed to designate CPIOs and the Appellate Authorities at their headquarters in 06 weeks time. The CPIOs so appointed will respond to the RTI applications extracted in this order in 04 weeks time. Besides, the Presidents/General Secretaries of the above mentioned Political Parties are also directed to comply with the provisions of section 4(1) (b) of the RTI Act by way of making voluntary disclosures on the subjects mentioned in the said clause. 94. The complaints are disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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