High Court issued notice to Secretary and Former
Director, Ambika Prasad Das of Kendrapara Urban Cooperative Bank on allegation
of corruption and undue favour granted in terms of release of advertisement worth
lakhs of rupees to Odisha Express
(Order of
Lokayukta, Odisha in LY-725/2019 was challenged in the High Court)
While hearing a writ petition
No. 8127 of 2022 filed by Srikant Pakal, RTI Activist challenging
order of Lokayukta, Odisha , Hon’ble High Court, Odisha has issued notice dt. 8.4.22 to Lokayukta, Odisha , Secretary and former Director Ambika Prasad
Das of Kendrapara Urban Cooperative Bank and Registrar of Cooperative
Societies, Odisha and Managing Director,
Odisha State Cooperative bank seeking response on allegation of undue favour
and illegal payments made by OSCB and Kendrapara Urban Cooperative Bank in terms of advertisement issued in favour of “ Odisha Express “ , a newspaper owned by Ambika Prasad Das who was director of both the Banks.
On 18.11.19, Sri Srikant Pakal , RTI Activist had filed
a complaint before Lokayukta ,
Odisha relying on RTI information that Kendrapara
Urban Cooperative Bank has provided lakhs of rupees against advertisement in every year a newspaper named “ Odisha Express” which is
highest amount compared to other
agencies. For example, for advertisement of auction notice , the Bank has
sanctioned Rs. 25,000.00 to Sambad ,
largest circulated daily in Odisha on
29.12.15 against allocation of Rs. 1,31,583.00 to Odisha Express , a small
newspaper dt. 8.12.15. Odisha Express
has been given highest advertisement in comparison to other agencies.
It was alleged that Sri Ambika
Prasad Das who happens to be Executive Editor of the News Paper “Odisha
Express” is also Director of this Kendrapara Urban Cooperative Bank. Using his
power and position, he has influenced the bank officials and grabbed huge
amount of money illegally from the Bank in the name of advertisement as exposed
under RTI. Srikant also presented a round figure around Rs. 9 lakhs given to Odisha Express within period of 5 years highest in
comparison to other Newspapers.
Srikant Pakal has also
appraised Lokayukata, Odisha referring order of Registrar of Cooperative Societies,
Odisha dt. 14.2.19 who has directed to
Managing Director, Odisha State Cooperative Bank to disqualify Ambika Prasad Das from Managing Committee of OSCB on the inquiry report submitted by DRCS, Khurda. It was revealed from the findings of the enquiry that “ Odisha
Express , Newspaper has been
awarded advertisement for publication of
orders of arbitrators in the Dispute
case at the cost of Rs. 37,17, 758.00 for the period from 2008 to 2017. Managing
Director, OSCB has shown highest inclination to the newspaper “ Odisha Express”
wherein Sri Ambika Prasad Das is the
Executive Director. It has also been established in the inquiry report
that such business transaction attracts disqualification of a Director
as laid down under section 28 (3)(f)
of OSC Act, 1962 ( No
Individual shall , whether by himself or as a representative of the society , be eligible for being chosen or for continuing as member or the president or as the Vice-president ,
if any of the committee of the Society, if he
(f) is interested directly or indirectly in any contract made with the society or in any sale or purchase made by the society or in any contract or transaction of the society ( other than investment and
borrowings ) involving financial interests, if the contract or transaction ,
sale or purchase be not complied.” On 15.2.2019, Managing Director, OSCB
disqualified Ambika Prasad Das for
continuing as member of the Commission of Management of OSCB.
Referring this inquiry report
and order of RCS, Odisha, Srikant has demanded before Lokayukta, Odisha seeking
legal action against Ambika Prasad Das and disqualify him from Kendrapara Urban
Cooperative Bank.
The Lokayukta , Odisha registered
complaint ( LY-
725/2019) and issued notice to
Ambika Prasad Das and Secretary,
Kendrapara Urban Cooperative Bank to
reply on the allegation of the
complainant. Following series of hearings and order of the Lokayukta,
respective submissions and counter-submissions were filed by Sri Ambika Prasad
Das, Secretary, Kendrapara Urban Cooperative Bank and complainant.
Ambika Prasad Das in his
counter-submission stated that all allegations are false and fabricated. He presented copy of the letter of
Cooperation department directing MD, OSCB to withhold disqualification of
Ambika Prasad Das, document signifying Sri Das not being owner of Odisha Express
and a three-member inquiry report of Cooperation Dept. Which has given clean chit to Ambika Prasad Das
which was alleged by complainant as an orchestrated inquiry conducted with
intention to give clean chit to Sri Das.
Hearing the arguments and
counter-arguments from the both the sides, Lokayukta, Odisha directed both the
parties to file comparative statements with regard to total amount paid to
various newspapers towards advertisements by the Bank. Srikant Pakal filed a
statement showing that between 2015 to 20.3.2019, an amount
of Rs. 8,96,382.00 ( including Rs. 3,30,184 towards publication of audited
balance sheet for the year 2015 to 2018 which was specially and only given to
Odisha Express) ) has been paid to Odisha Express which is much more than the amounts paid to any
other newspaper individually. Sri Das submitted
that Odisha Express has received from 1.4.2015 to 31.3.2020 Rs. 5,08,758 compared to Sambad ( Rs.
4,54,164.00) , Prameya ( Rs. 5,13,604.00),
Samay ( Rs. 1,17,354.00),
Pragativadi ( 83,043.00) etc. and kept
secret about payments of Rs. 3, 30,184 . The Secretary, Kendrapara Urban Cooperative
Bank has submitted dt. 12.3.2021 that it is statutory to get annual balance sheet
of the Bank published in the Daily newspaper and that Odisha Express being the
daily newspaper widely circulated and having its separate edition at Kendrapara
, balance sheet was issued to it for publication. The Lokayukta did not question the logic presented by Bank to select only Odisha Express for giving huge
advertisement. Lokayukta should have
enquired why Odisha Express was chosen
when many newspapers like Sambad and Samaj has wider circulation in Kendrapara.
Lokayukta did not verify whether Odisha Express has practically any separate
edition in Kendrapara or for name’s sake or it is mentioned as separate edition
in pen and paper. As Lokayukta is empowered
to conduct preliminary inquiry into allegation under section 20 of the Odisha
Lokayukta Act, the Lokayukta Bench did not conduct any inquiry simply relied on
Govt. inquiry report which was challenged before Lokayukta. Lokayukta Bench
also didnot conduct inquiry when MD, Odisha State Cooperative Bank is
disqualifying its Director under Odisha State Cooperative Societies Act, how Department
of Cooperation will grant stay order on direction of MD . There is no such
provision under any Act to grant such stay on order of MD, OSCB. Though
complainant presented this logic, Lokayukta did not hear it taking plea that the content of complaint
is related to Kendrapara Urban
Cooperative Bank. Lokayukta , Odisha
disposed the case without passing any
order for inquiry. Holding order of Lokayukta as arbitrary, Srikant Pakal
approached High Court, Odisha for inquiry into the matter. High Court accepted
the writ petition and issued notice dt. 8.4.22. to all opposite parties
including Lokayukta for response.
Srikant Pakal
RTI Activist
M-6370216463
