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

The Rajasthan High Court ruled that an NGO receiving government subsidies does not qualify as a 'State' under Article 12 of the Indian Constitution. This decision has significant implications for the legal accountability of NGOs, as being classified as a 'State' would subject them to the same constitutional responsibilities as government entities. The court clarified that receiving financial aid from the government does not transform an NGO into a public authority. This ruling is important for maintaining the distinction between governmental bodies and private organizations, even when the latter receive public funds, thereby limiting the extent of judicial oversight over NGOs.