NGO Approved By State Functionaries And Receiving Subsidy Under Govt Policy Cannot Be Considered “State”: Rajasthan High Court

Rajasthan High Court has held that an NGO that was approved by the functionaries of the State and was given subsidy under a government scheme cannot be considered “State”.

The division bench of Justice Pankaj Bhandari and Justice Praveer Bhatnagar was hearing a petition filed by an employee of the NGO against her termination order.

It was the case of the petitioner, that she was appointed by the president of an NGO which was receiving subsidy under the “Mahila Suraksha Evam Salaah Kendra Niyaman Evam Anudaan Yojna 2017 (“Yojna”), for looking into the grievances of the female. The petitioner submitted that as per the Yojna, there was a requirement of minimum 2 females in the NGO and out of these two positions, one was given to her.

Hence, as argued on her behalf, since the NGO was approved by the committee consisting of District Collector, Superintendent of Police, Chief Judicial Magistrate and other functionaries of the State, any employee of the NGO could not have been removed without the sanction of the authorities.

The Court rejected the submissions by the petitioner and opined that,

“The respondent No.4 is an NGO and cannot be treated as a State merely because it has been approved by functionaries of the State. As per “Mahila Suraksha Evam Salaah Kendra Viyaman Evam Anudaan Yojna”, the State is only giving subsidy to the NGOs for looking into grievances of the female. Be that as it may, learned Single Judge has rightly held that respondent No.4 – Sansthan is not a State…”

Accordingly, the petition was dismissed.

Title: Poonam v State of Rajasthan & Ors.

Citation: 2024 LiveLaw (Raj) 236

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