Discuss the test laid down by the Supreme Court of India to determine the entity of "State", whether it is 'instrumentality or agency of State'.

Article 12 of the Constitution of India defines State and its scope includes the Government and Parliament of India; the Government and Legislature of each of the States; and all local or other authorities within the territory of India or under the control of the Government of India. In the case of Ajay Hasia v. Khalid Mujib, AIR 1981 SC 481 , the Supreme Court has enunciated the following test for determining whether an entity is an instrumentality or agency of the State: If the entire share capital of the Corporation is held by the Government, it would go a long way towards indicating that the corporation is an instrumentality or agency of the Government. Where the financial assistance of the State is so much as to meet almost the entire expenditure of the corporation it would afford some indication of the corporation being impregnated with government character. Whether the corporation enjoys a monopoly status which is conferred or protected by the State. Existence of deep and pervasive State control may afford an indication that the corporation is a State agency or an instrumentality. If the functions of the corporation are of public importance and closely related to government functions, it would be a relevant factor in classifying a corporation as an instrumentality or agency of government. If a department of government is transferred to a corporation, it would be a strong factor supporting an inference of the corporation being an instrumentality or agency of government.