Monday, July 12, 2021

Odisha Lokayukta and Govt. of Odisha working together to protect high-ranking corrupt officials

 

Odisha Lokayukta and Govt. of Odisha working together to protect high-ranking corrupt officials

Protection to Bishnupada Sethy involved in corruption and misappropriation of funds of Odisha State Cooperative Bank, given by  the Lokayukta, Odisha  is  a Glaring Example.

Appeal  to Hon’ble  Governor, Odisha  under  section 37  of Odisha Lokayukta Act   for  taking  action  against  Justice  Ajit Singh, Chairman, Lokayukta, Odisha  and order  for  instituting  high-level inquiry  committee  to unearth  the  truth.

 While deciding a complaint case LY-110/2019, a three member bench of Lokayukta headed by its Chairman Sri Ajit Singh has granted clean chit to Mr. Bishnupada Sethi, IAS, Secretary, Revenue and Disaster Management, Govt. of Odisha and has also, going out of the way, showered profuse appreciation on the accused Mr. Sethy for his return of Rs. 3, 27,000.00 to Got. which was  taken  by him  towards  reimbursement medical bill for  treatment of his wife and father. Besides, Lokayuykta has also taken the view that huge amount money in the form of incentives, orderly allowances, electricity bill, book allowances etc taken by Bishnupada Sethy was legally justified too, as he had worked as a full-time staff of Odisha State Cooperative Bank. But, such conclusion of the Lokayukta, made in defence of a high-ranking Govt. official Mr. Bishnupad Sethy is not only factually incorrect, but also legally questionable. 

 Background of complaint that was filed in Lokayukta, Odisha

 On 1.7.2019,  Srikant Pakal ( M- 6370216463) 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 had  filed this  complaint seeking  an inquiry  and legal action under the  Prevention of Corruption Act, 1988.

 Content of the Complainant’s allegation

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.

 Sri Pakal had  also 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.

  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.”

 Hearing, inquiry and disposal of Complaint LY-110/2019 by Lokayukta, Odisha

 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. 

1.  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.”

 2.    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.

 3.    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 . “

4.    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.

5.    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.

 6.    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.

 7.    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.

 8.     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.

 9.    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.

 10. 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.

 11. 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 rhree actors.

 12. 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 .

 13.  The  comments  of the  Lokayukta  in its Order    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.

 14. 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.

 15.  We appeal   for instituting a high power independent inquiry committee to unearth facts around illegal payments made  to  Sri Bishnupada Sethi.

 Pradip Pradhan

M-9937843482

Date- 12.7.21 






 

 

1 comment:

  1. When Judges and Commissioners will sell out their morality Such type of judgement will come.When Mr.AjitSingh became the Lokayukta he was organising meeting in all districts to awre the people that Lokayukta will act actively against corrupt officials.Now in this case it is observed that he is no better than Bisnupad Sethi.May be he has availed some previleges from Mr.Sethi.

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