High Court issued notice to Secretary and Former Director, Ambika Prasad Das of Kendrapara Urban Cooperative Bank on allegation of corruption

 

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