Complaint under Section 37 (4)(c) of Odisha Lokayukta Act 2014
To Date- 15.7.21
His Excellency Prof. Ganeshi Lal
Hon’ble Governor, Odisha
Raj Bhawan, Bhubaneswar
Sub- Seeking action against Chairman Odisha Lokayukta Justice Ajit Singh under Section 37 (4)(c) of Odisha Lokayukta Act, 2014
Ref: Order of Odisha Lokayukta No. LY- 110/2019 dated 9.7.21 issued by a Lokayukta Bench comprising Justice Ajit Singh Chairperson and other two learned members .
Esteemed Sir,
We, the following signatories who are anti-corruption activists and users of Odisha Lokayukta Act 2014 for our fight against corruption of public servants, would like to urge your esteemed authority to peruse the following complaint of ours and take action deemed proper by way of exercising your power under Section 37( (4) (c ) of the said Act-
1. In order to apprise your august office on the rationale of the above complaint we beg to narrate a summary of the facts and circumstances that made us to file it before your esteemed authority and we fervently hope that your august office shall pass an appropriate order in the matter to meet the ends of justice and probity.
2. On 1.7.2019, Srikant Pakal, one of our RTI Activist-friends filed a complaint before the then newly-constituted Lokayukta, Odisha alleging Illegal drawal of lakhs of rupees from Odisha State Cooperative Bank, Bhubaneswar by Sri BishnuPada Sethi, IAS during his tenure as Management-In-Charge , OSCB , who happens to be presently working as Secretary Revenue and Disaster Management , Govt. of Odisha. Relying on RTI information and statutory inspection Report of NABARD submitted to the Registrar of Cooperative Societies , Odisha , Sri Pakal filed this complaint seeking an inquiry and legal action under the Prevention of Corruption Act, 1988.
3. It is to be noted that a Statutory Report on Inspection of Orissa State Cooperative Bank conducted by NABARD u/s 35 (6) of Banking Regulation Act, 1949 basing on the financial position as on 31.3.2018 along with a note for departmental action was submitted to the Registrar, Cooperative Societies, Govt. of Odisha, Bhubaneswar. As per the said Report, Sri Bishnupada Sethi IAS, the erstwhile Commissioner-cum-Secretary, Cooperation Department held the additional charge of OSCB as its Management-in-Charge ( MIC) with effect from 5th February, 2013 and continued upto 2016. There was as such no legal provision nor any order approved by the RCS, Odisha under Orissa Cooperative Societies Act, by which a Government Servant holding a substantive post in the State Government but simultaneously functioning as Management-In-Charge or Administrator of any Cooperative Society will be eligible for various financial benefits. However, it was observed that the concerned Bank had reimbursed / paid book allowances Rs. 10,000 per annum, Electricity/ Energy Bill on actual basis , orderly allowances at Rs. 3000 per month, and above all Incentive ( vide staff Rule No. 54-A) payable to the employees who are otherwise not eligible for Bonus not exceeding 45 days salary. Thus, Incentives paid to Sri Bishnupad Sethy stood at Rs. 1,70,691 for 2013-14, Rs. 1,91,519 for 2014-15 and Rs. 65, 993 for 2015-16. But, the contention of the Complainant was that the MIC not being a staff member of the Bank as per the Staff Services Rules should not have been paid the amount and the amounts in question are, therefore considered irregular and instances of corruption.. During his tenure as MIC, Sri Sethi had got reimbursed medical bills in three phases amounting to Rs. 9,46,071 towards hospitalization of his wife and father. There were recommendations from the Government for reimbursement in two phases in view of the budgetary constraints of the Department concerned and, as a matter of fact, in one case there was no recommendation from the Government at all. Therefore, these were all illegal payments made in favour of Sri Sethi.
4. It was alleged that as per the provisions of Section 3(2) of Odisha Cooperative Societies Act, the State Government may by general or special order confer on any person appointed to assist the Registrar in respect of all or any of the powers of Registrar under OCS Act to be exercised within such local limit as may be assigned by the Registrar. Under the Section 3(4) of the OCS Act, the persons appointed to assist the Registrar shall exercise the power conferred on him subject to general superintendence and control of the Registrar. As such there were no legal provision nor any order approved by the Registrar, Cooperative Society by which Sri Bishnupada Sethi or any other Government Official holding substantive posts under the State Government would be made eligible for various financial benefits from the OSCB in respect of which they acted as Management-in-Charge or Administrator.
5. Sri Pakal had also further mentioned in his complaint that “having heard about these payments made to Sri Bishnupada Sethi, one of my RTI Activist-friends had filed an RTI Application dated 26.11.18 to the PIO, office of Odisha State Cooperative Bank seeking information about ( a) details of various incentives like orderly allowances, electricity bill and any other payment received by him ( month-wise) , (b) provide information about the details of decision taken by OSCB, (c) details of medical reimbursement bill submitted by Sri Bishnu Pada Sethy and the amounts released against the same along with copy of the decisions taken for payment against medical reimbursement etc. The PIO denied to supply the information under section 8(1)(j) of the RTI Act. However, this case is pending in the office of Odisha Information Commission for disposal.”
6. After perusing the Complaint, Lokayukta, Odisha issued notice to Sri Bishnupada Sethy to file Reply. On 14.8.2019, Sri Sethy filed his submission justifying all the amounts taken by him as legal and appropriate. His series of submissions were also followed by a series of counter-submissions filed by the complainant Sikant Pakal before Lokayukta, Odisha. The Rejoinders containing the Conter-Submissions of Srikant Pakal were as follows.
· While Shri Bishnupada Sethi , IAS was holding the post of Commissioner-cum-Secretary of Cooperation Department , he managed to ensure the issue of letter No. 908 dt. 5.2.2013 to addressed to the Registrar of Cooperative Societies (RCS) , Odisha by way of putting undue influence on one of his subordinate officers i.e., Deputy Secretary of the Dept. . In the said letter, the Deputy Secretary of Cooperation Department who happened to be a subordinate officer under Commissioner-cum-Secretary of Cooperation Dept. had requested RCS, Odisha to appoint Commissioner-cum-Secretary of Cooperation Dept. as the administrator of OSCB IN SERIAL NO. 67 of the list. As per section 32(1) of the OCS Act, 1962, an administrator can only be appointed by the RCS, Odisha in case of suspension of the elected committee of management of OSCB . Hence the said Govt. letter issued to RCS, Odisha was contrary to the provision of OCS Act. The RCS, Odisha though an officer subordinate to the Commissioner-cum-Secretary of Cooperation Dept, did however feel that he was unable to appoint Mr. Bishnupada Sethi as the administrator of OSCB due to legal constraints. However to circumscribe the legal constraints the said Officer of the Govt. was induced to act dishonestly and without propriety in such a way as to give undue advantage to Sri Sethi to hold the post of Management-in-Charge vide by the issue of an order on the same day, that is, dt. 5.2.2013. He also unlawfully assigned local limits to Sri . Sethy, Commissioner-cum-Secretary of Cooperation Dept. in respect of Odisha State Cooperative Bank for exercising power of Registrar u/s 28 of OCS Act. It is thus clear that the said appointment was never made following provisions of Section 3 of OCS Act, 1962.
“ Under section 3 (1) of the OCS Act , the State Got. is empowered to appoint a person as Registrar of Cooperative Societies for the state and may appoint other officers to assist him. Under Section 3(2) of OCS Act , 1962 , the State Government may by general and special order confer on any person appointed to assist the Registrar of Cooperative Societies in all or any other power of Registrar under the Act to be exercised within such local limit as may be assigned by the Registrar. Under section 3(4) of the OCS Act , every person appointed to assist Registrar shall exercise the powers conferred on him subject to general superintendence and control of the Registrar.”
· On the face of the letter dt. 5.2.2013 of the State Government issued to RCS, Odisha suggesting appointment of an administrator and the order of RCS, Odisha dt. 5.2.2013 appointing the Commissioner-cum-Secretary, Cooperation Dept. as MIC of OSCB are contrary to the provisions of Section-3 of OCS Act. Similarly, when Sri Bishnupada Sethi was transferred to the Secretary –cum-Commissioner of Dept. of Fisheries and ARD ON 18.8.2014 , he again managed to arrange the issue of a letter to RCS, Odisha to appoint him again as MIC of OSCB. The said letter was issued by Cooperation Department vide letter no. 7475 dt. 24.9.2014 and the RCS, Odisha appointed Sri Sethy , Commissioner-cum-Secretary, Dept. of Fisheries and ARD as MIC of OSCB by issuing a letter dt. 30.9.14 and the issue of all these letters violated the statutory provision, that is, Section 3(2) of OCS Act.
· As to the provision mandating the MIC ( Management –in-Charge ) to work under general superintendence and control of Registrar of Cooperative Societies Odisha, Sri Sethi submitted before Lokayukta that functioning of MIC of OSCB has been exempted under Section 123 of OCS Act. This claim of Sri Sethy is a false one as stated by Srikant Pakal in his counter-submission, in which the definition of Section 123 of OCS Act was given as follows- .
“ Power to exempt Class of societies- The State Government may by general or special order exempt any society or any class of societies other than cooperative credit Societies from any of the provisions of the Act or may direct that such provisions shall apply to such society or class of societies with modifications as may e specified in the order”. The word Cooperative Societies has been defined in section -2 (c-2) of OCS Act, 1962 which includes Odisha State Cooperative Bank , District Central Cooperative bank , PAC, SCS, LAMPCS & FSCS . “
· As to the allegation of undue payments of huge incentives to him from the OSCB, Sri Bishnupada Sethi , IAS justified it in view of Section 56(g) of OCS Act that provided for payment of honorarium to members of committee of management of OSCB for rendering specific services not exceeding 10 % of the net profit for the year, such payment being thus permissible to him as Management-in-Charge of OSCB, he had availed honourarium in shape of incentives under provisions of section 56(g) of OCS Act. The counter –submission of the complainant was that under provision of Sections 29(2)(h) and 56(2)(g) of OCS Act , the General body is empowered to approve distribution of net profit, which also includes payment of honorarium to committee members. Distribution of net profit must be made by General Body within the budgetary allocation. But Sri sethi during his tenure as Management-in-Charge had unlawfully and illegally availed incentives applicable for the paid employees of the Bank by abusing his official power. His claim of availing incentives has not been approved by the General body of OSCB while distributing / appropriating profit under Section 29(2)(h) of the OCS Act. Misusing his power and position, Sri Sethi has availed the benefits from the Bank. Similarly, Sri Sethi has illegally availed the book grant, orderly allowances , electricity bill etc. and taken lakhs of rupees against the same.
· In respect of availing electricity bill, Sri Pakal had submitted before the Lokayukta that Sri Sethi as Commissioner –cum-Secretary of Cooperation Dept and Dept. of Fisheries and ARD was availing Govt. quarters and no allotment was made by OSCB for providing residential accommodation to the MIC. The electricity / energy bill of the Govt. quarter is borne by the occupants as per Govt. Rules. No such Rules or order either by Govt. or by the OSCB had never been framed for payments of electricity / energy bill enjoyed by Bishnupada Sethi in his Govt. Quarter for which the same could be reimbursed by OSCB. In the absence of any Government Rules or any provision under OCS Act and Rules, the reimbursement of electricity and water tax of the Government quarter occupied by Sri Sethi was an illegal act which constitutes misconduct under All India Service Conduct Rules and liable to be punished.
· As to the allegation on the availing orderly allowances @Rs. 3000.00 per month by Sri Bishnupada Sethi , IAS as MIC of OSCB, Sri Pakal had alleged that there was neither any decision of OSCB nor any approval of RCS, Odisha to make any payment to MIC towards orderly allowances. As Sri Sethi was holding a substantive civil post as Commissioner-cum-secretary of Cooperation Dept. , he was not eligible as such to avail such payments. As regards the resolution of the executive committee of OSCB dated 4.8.2010 referred by Bishnupada Sethi in justification of his eligibility to avail such benefits , Sri Pakal had submitted that the said resolution was made to make payments at the enhanced rate of Rs. 3000.00 per month towards the orderly allowances to the officers of the Bank. The said resolution of the EC was never approved by the RCS, Odisha which is mandatory under Sections 28(1)(a)(viii) and 33-A of OCS Act . The Word “Officer” has been defined under Section -2(g) of OCS Act and is as such confined to the paid employees of the Bank. Sri Sethy as MIC was not a paid employee of the Bank.
· As regards reimbursement of medical Bill, Sri Srikant Pakal had alleged that Sri Sethi was holding the post of Commissioner-cum-secretary of Cooperation Department as well as MIC of OSCB till 18.8.2014. Abusing his official position as Commissioner-cum-Secretary of Cooperation Department he managed the issue of a letter to Managing Director, OSCB vide letter no. 2903 dated 3.4.2014 ( Just a few days after joining as MIC ) for reimbursement of medical claim of Rs. 1.5 lakh for treatment of his father and as MIC he illegally availed the said amount from OSCB and made illegal financial gains. Similarly, while he was working as Commissioner-cum-Secretary of F&ARD department, his office had issued the letter no. 8856 dt. 22.7.2015 through one of his subordinate officers to MD, OSCB for reimbursement of Medical bill of Rs. 1.34 lakh for treatment of his father at Apollo Hospital , Bhubaneswar. As MIC of OSCB , he abused his position and illegally availed Rs.1.34 lakhs from the OSCB. There was no budgetary allocation approved in the General body for the disbursement of the said medical bills in favour of MIC. Even there was no sanction of RCS, Odisha for payments of medical bill and incentive/ honourarium to MIC , since the MIC is subject to superintendence and control of RCS, Odisha.
7. After hearing of both sides , on 5.1.21., the Lokayukta passed the order appointing its Director of Inquiry as Inquiry officer to conduct preliminary inquiry into the allegations so dvanced and to produce the report within two months. At the time when the order was being passed, the learned counsel for Bishnupada Sethy made the submission before Lokayukta for return of the whole amount, which was seriously objected to by Justice Ajit Singh , Chairman of the Lokayukta.
8. During the inquiry, clandestine efforts were initiated at the bureaucracy level to protect Bishnupada Sethi and the inquiry officer was influenced to prepare the report accordingly. The Director of Inquiry submitted their report before Lokayukta, Odisha in April, 2021, which was however not shared with the Complainant despite the latter’s request for obtaining a copy the report. In the final order of the Lokayukta dt. 6.7.21 ( day of adjudication of the case) , the following observation was found there in, “ considering the inquiry report, the Lokayukta is of the view that Sri Sethi , as a Government Servant was engaged whole time in connection with the affairs of OSCB. Even the Minister, Cooperation in his comments has confirmed that Sri Sethi worked for full-time in OSCB”. However, it was factually incorrect. In his submission before Lokayukta, Sri Sethi has never made submission that he had worked full time in OSCB. Rather he had justified the appropriation of all benefits citing OCS Act and Rules. Further Sri Sethi being Secretary Cooperation Department and Fisheries Department never worked whole time in OSCB as he was drawing salary and other perks from Government of Odisha during the relevant period.
9. The Director of Inquiry gave his finding that Sri Sethi has been lawfully reimbursed medical bill amounting to Rs. 3,27,00,000 on different occasions from the Bank after receiving permission from the Govt. However, it is to be noted that the money of OSCB is not Govt. money. The Govt. is in no way concerned with the financial matter of the Bank and can not dictate its terms to the Bank. In respect of any decision on financial matter , the approval of the General Body and RCS, Odisha is mandatory. In the matter of reimbursement of medical Bill to Sri Sethi , neither General body nor RCS, Odisha has approved it. The question thus arises, how, the inquiry officer prepared such a false report without looking into legal provisions of OCS Act and Rules.
10. The Lokayukta , Odisha with a view to give undue protection to Sri Sethi deliberately and out of the way appreciated Sri Bishnupad Sethi for returning the entire amount of Rs. 3,27,00,000 to the Bank as a gesture of good will. But, the next question arises, if he has taken the money legally and inquiry report has justified it, the need for returning the money didn’t arise at all. It shows that a secret understanding between Lokayukta and State Govt. with the full knowledge of Sri Bishnupada Sethi was made, to the effect that Sri Sethi would return the amount and Lokayukta would appreciate it and refrain from passing any critical order against Sri Sethi . In a nutshell the inquiry report and subsequent order of the Lokayukta were the result of an unholy nexus and secret understanding between the above mentioned three actors.
11. Moreover it is ridiculous that Lokayukta has requested the State Got. to pay back the money of the medical bill which Sri Sethi had appropriated illegally and after a long was forced to return it .
12. The comments of the Lokayukta in its Order dt. 9.7.21 that “ there was no denial by the complainant that Sri Sethi was not whole time engaged in connection with affairs of OSCB “ is factually wrong and objectionable. The so-called inquiry report was neither shared nor quoted verbatim during the hearing of the case by the Lokayukta, Odisha. Nor the Lokayukta has sought any views from the complainant about it. The Lokayukta has deliberately mentioned the above the above only to defame the Complainant and to protect Sri Bishnupada Sethi from any blemish in the matter.
13. Relying thus completely on a make-believe and secretive inquiry report, Lokayukta stated that Sri Sethi was clearly entitled to receive a bonus under Section 56 (2)(f) of OCS Act, 1962 and rejected the allegation made against Sri Sethi for receiving the undue financial benefits from OSCB by misusing his position and authority.
In view of the facts and circumstances narrated above, we are of the view that Justice Sri Ajit Singh, Chairperson, Lokayukta has patently failed to discharge his statutory obligations as required of him. We therefore pray before your Excellency Sir to order an action deemed proper against Justice Sri Ajit Singh Chairman Lokayukta, Odisha on the ground of mental infirmity in exercise of the powers vested in Governor Odish under Section 37(4)(c) and simultaneously to pass another Order deemed appropriate, in the capacity of Executive Head of the State under Article 154(1) of Constitution, for institution of an impartial and comprehensive enquiry covering all the parties mentioned in our Complaint and exploring all angles thereto, so as to unearth the factors and actors responsible for huge illegal payments to Sri Bishnupada Sethy, IAS as Management-in-Charge.
Yours sincerely
Pradip Pradhan
Debesh Das
Sudhir Mohanty
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