‘substantial’ means a large portion
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 9828 OF 2013
D.A.V. COLLEGE TRUST AND
MANAGEMENT SOCIETY & ORS. …APPELLANT(S)
VERSUS
DIRECTOR OF PUBLIC
INSTRUCTIONS & ORS. …RESPONDENT(S)
With
CIVIL APPEAL NOS. 98449845 OF 2013
CIVIL APPEAL NOS. 98469857 OF 2013
CIVIL APPEAL NO. 9860 OF 2013
26. In our view, ‘substantial’ means a large portion. It does not
necessarily have to mean a major portion or more than 50%. No hard
and fast rule can be laid down in this regard. Substantial financing
can be both direct or indirect. To give an example, if a land in a city is
given free of cost or on heavy discount to hospitals, educational
institutions or such other body, this in itself could also be substantial
financing. The very establishment of such an institution, if it is
dependent on the largesse of the State in getting the land at a cheap
price, would mean that it is substantially financed. Merely because
financial contribution of the State comes down during the actual
funding, will not by itself mean that the indirect finance given is not
to be taken into consideration. The value of the land will have to be
evaluated not only on the date of allotment but even on the date
when the question arises as to whether the said body or NGO is
substantially financed.
27. Whether an NGO or body is substantially financed by the
government is a question of fact which has to be determined on the
facts of each case. There may be cases where the finance is more
than 50% but still may not be called substantially financed.
Supposing a small NGO which has a total capital of Rs.10,000/ gets
a grant of Rs.5,000/ from the Government, though this grant may be
15
50%, it cannot be termed to be substantial contribution. On the
other hand, if a body or an NGO gets hundreds of crores of rupees as
grant but that amount is less than 50%, the same can still be termed
to be substantially financed.
28. Another aspect for determining substantial finance is whether
the body, authority or NGO can carry on its activities effectively
without getting finance from the Government. If its functioning is
dependent on the finances of the Government then there can be no
manner of doubt that it has to be termed as substantially financed.
29. While interpreting the provisions of the Act and while deciding
what is substantial finance one has to keep in mind the provisions of
the Act. This Act was enacted with the purpose of bringing
transparency in public dealings and probity in public life. If NGOs or
other bodies get substantial finance from the Government, we find no
reason why any citizen cannot ask for information to find out whether
his/her money which has been given to an NGO or any other body is
being used for the requisite purpose or not.