In a significant order that goes a long way in ensuring transparency in the cooperative banking sector, the Karnataka Information Commission has ruled that the Karnataka State Co-operative Apex Bank qualifies as a public authority under the Right to Information Act, 2005, directing it to comply with provisions of this transparency law.
The ruling came while hearing a second appeal filed by Hanumantha Vasanth Shinde, who had sought copies of documents submitted by Nirani Sugars Ltd. while availing loans from the Apex Bank between March 2022 and June 2024. The bank had declined the request, stating that it was a cooperative society and hence did not come under the purview of the RTI Act.
The bank argued that it was neither owned nor substantially financed by the State government and therefore did not fall within the definition of “public authority” under Section 2(h) of the RTI Act.
However, State Information Commissioner Rajashekara S., who heard the case, rejected the argument, observing that the institution functions under deep and pervasive state control.
In his order, the commissioner examined the historical evolution of the bank, statutory provisions governing cooperative institutions, and the extent of administrative and financial oversight exercised by the State.
