Public Authority under RTI

Source: Supreme Court  

Why in News? 

Recently, Justices Vikram Nath and Sandeep Mehta stayed a Kerala High Court ruling that declared Cochin International Airport Ltd. (CIAL) a 'public authority' under the RTI Act. The Court will hear the matter in January 2026 after granting leave to appeal. 

• The Supreme Court held this in the matter of M/s Cochin International Airport Ltd. v. State Information Commission and Ors. (2025). 

What was the Background of M/s Cochin International Airport Ltd. v. State Information Commission and Ors., Case (2025) ? 

• The present case concerns M/S. Cochin International Airport Limited (CIAL) challenging the determination of the State Information Commission and subsequent judicial pronouncements regarding its status as a 'public authority' under the Right to Information Act, 2005. 
• In 2019, the State Information Commission of Kerala determined that CIAL constituted a 'public authority' under Section 2(h)(d)(i) of the RTI Act, 2005, and directed disclosure of certain information pursuant to RTI applications.  
• CIAL contested this determination before the Kerala High Court, arguing that the Kerala government exercised no substantive control over Board decisions, holding merely 32.42% of paid-up share capital with dividend returns exceeding state investments.  
• CIAL contended that the nomination and appointment of Directors, including the Managing Director, remained subject to Board decisions per the Articles of Association, with ultimate decision-making authority vesting in the Board rather than the state government. 
• The respondents countered by highlighting CIAL's financial dependencies, including a 100 Million bridge loan from Federal Bank guaranteed by Kerala government due to CIAL's lack of security, and a 1 billion term loan from HUDCO at 18% fixed interest guaranteed by the State Government, with repayments commencing in 2000 upon project operationalisation. 
• The corporate genesis reveals that CIAL's predecessor, Kochi International Airport Society (KIAS), was constituted through Government Order (Ms) No. 42/93/PW&T dated 19.05.1993 issued by the District Collector of Ernakulam. 
• Land acquisition was undertaken by Kerala government in KIAS's name, subsequently transferred to CIAL, forming the company's entire asset base.  
• The procedural history shows the Single Bench upholding the State Information Commission's determination in December 2022, followed by CIAL's writ appeals being dismissed by the Division Bench in August 2025, leading to the Supreme Court challenge and subsequent stay order with listing for January 2026.

What were the Court’s Observations?

• The Kerala High Court Division Bench examined three cardinal issues under Section 2(h)(d)(i) of the RTI Act: establishment by government order, government control, and substantial financing. 
• The Court observed that CIAL's predecessor KIAS was constituted through Government Order (Ms) No. 42/93/PW&T dated 19.05.1993, establishing that both entities came into existence by virtue of this government order which formally set the stage for Cochin airport's establishment. 
• Regarding government control, the Court found that 6 of 11 Board directors were ex-officio government nominees, including the Chief Minister and Cabinet Ministers.  
• The judicial analysis established that government control was complete and total, not merely nominal or supervisory, recognising that private directors yield to governmental authority when senior functionaries preside over meetings. 
• On substantial financing, the Court clarified that substantial financing implies aid that is tangible and significant, emphasising that determination concerns extent of financing rather than returns earned.  
• The Court confirmed that public funding and State exchequer resources were cardinal to CIAL's sustenance and operation. 
• The Court imposed costs of Rupees one lakh on CIAL for procedural violations in filing appeals without proper Board authorisation.  
• The final determination concluded that all limbs of being a 'public authority' were satisfied, affirming CIAL's obligation to meet RTI compliance requirements within specified timelines. 

What is Public Authority Under RTI ? 

• Section 2(h) of RTI Act, 2005 Define "Public Authority"  
• Primary Categories of Public Authority 
  • Constitutional Bodies: Any authority or body or institution of self-government established or constituted by or under the Constitution of India. 
  • Parliamentary Legislative Bodies: Any authority or body or institution established or constituted by any other law made by Parliament. 
  • State Legislative Bodies: Any authority or body or institution established or constituted by any other law made by State Legislature. 
  • Government Notification Bodies: Any authority or body or institution established or constituted by notification issued or order made by the appropriate Government. 
• Extended Definition under Section 2(h)(d) 
  • The definition includes additional categories of entities that fall within the purview of public authority: 
  • Sub-section (i) - Owned, Controlled or Substantially Financed Bodies 
    • Any body owned by the appropriate Government. 
    • Any body controlled by the appropriate Government. 
    • Any body substantially financed by the appropriate Government. 
  • Sub-section (ii) - Non-Government Organisations 
    • Non-Government organisations substantially financed by the appropriate Government. 
    • Such financing may be direct or indirect through funds provided by the appropriate Government.