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Are private companies covered under the RTI Act?

Are private companies covered under the RTI Act?

29-Apr-2025

R.T.I

Answer By law4u team

No, private companies are not directly covered under the RTI Act, 2005. The Right to Information (RTI) Act applies mainly to public authorities, which are defined as bodies established or owned, controlled, or substantially financed by the government. However, here’s a detailed explanation: 1. What the RTI Act covers: The RTI Act applies to: Central and state government departments Public sector undertakings (PSUs) Constitutional bodies like the Supreme Court, Election Commission, etc. Bodies substantially financed by government funds (even if not fully government-owned) 2. Are private companies directly accountable under RTI? No. Private companies are not directly accountable under the RTI Act because they are not public authorities. A citizen cannot file an RTI request directly to a private company seeking information about its internal affairs. 3. Indirect applicability via regulatory bodies: Although private companies are not covered directly, information related to them can be accessed indirectly if that information is held by a public authority. For example: If a private company is regulated by SEBI, RBI, or any other public authority, one can file an RTI with that public authority to obtain information about the company that is held by the regulator. If a private company has received significant government funding or subsidies, or is engaged in a public-private partnership (PPP), its relevant documents may be available with the concerned government department. 4. Court rulings on indirect access: Indian courts have clarified that while private companies are not public authorities, if they perform public functions or receive substantial public funding, they may come under scrutiny through public authorities that oversee them. Conclusion: Private companies cannot be accessed directly under the RTI Act, 2005. However, information about them can be obtained indirectly through public authorities that regulate, finance, or work with them. This maintains transparency in areas where private entities interact with public institutions.

Answer By Ayantika Mondal

The Right to Information Act 2005 (RTI ACT) was enacted to obtain information from the Public Authority which is defined under Section 2 (h) of the Act. The provisions of the Act are only related with the information to be obtained from public authorities. The Act is not applicable on private companies. However, the information of the private company can be obtained from its regulator if so. Relevant provisions in the Act in support of the same are as follows :- Preamble of the Act reads as under:- “An act to provide for setting out the practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every Public Authority, the Constitution of the Central Information Commission and State Information Commissions and for matters connected therewith or incidental thereto. Whereas …” Definition of Information Section 2 (f) of the Act reads as under:-“Information” means any material in any form, including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force. As per Section 2(h) of the Act - “Public Authority” means any authority or body or institution of self-government established or constituted, -  By or under the Constitution:  By any other law made by parliament;  By any other law made by the state legislature;  By notification issued or order made by the appropriate government, and includes any – • Body owned, controlled or substantially financed, • Or Non-government organisation substantially financed, Directly or indirectly by funds provided by the appropriate government; As per Section 2(j) of the Act - “Right to information” means the right to information accessible under this Act which is held by under the control of any public authority and includes the right to – o Inspection of work, documents, records ; o Taking notes, extracts, or certified copies of documents or records; o Taking certified samples of material; o Obtaining information in the form of diskettes, floppies, tapes, video-cassettes or in any other electronic mode or through printouts where such information is stored in a computer or in any other device; Public Authority includes the private organisations which are receiving financial aid from the State government. In M.P. Varghese Vs. Mahatma Gandhi University AIR 2007 Ker 230, the Hon’ble Kerala High Court while elaborating the meaning of public authority in the RTI Act 2005 states that those organisations which are receiving the financial aid from the State are under the ambit of the public authority. The word State is defined under Article 12 of the Constitution in relation to the enforcement of fundamental rights through courts, whereas the RTI Act is intended at achieving the object of providing an effective framework for effectuating the right to information recognised under Article 19 of Constitution of India.

Answer By Anik

The Right to Information Act, 2005 (RTI Act) provides citizens with access to information in the hands of public authorities, as mentioned in Section 2(h). It does not apply directly to private companies. However, information related to private bodies can be accessed through their regulators if permitted under other acts, as mentioned in Section 2(f). A "public authority" includes anybody established by the Constitution, law, or government order, and also non-governmental organisations funded to a large degree by the government. In M.P. Varghese v. Mahatma Gandhi University (AIR 2007 Ker 230), the Kerala High Court clarified that institutions which are funded by the state fall within the ambit of the RTI. Even though Article 12 of the Constitution categorizes 'State' for the sake of fundamental rights, the RTI Act supports the right to information under Article 19 to promote transparency and accountability.