Supreme Court Upholds Odisha Lokayukta’s Authority in Corruption Inquiry Against MLA

The recent Supreme Court judgment in Office of the Odisha Lokayukta vs. Dr. Pradeep Kumar Panigrahi and Others is a significant decision concerning the powers of the Odisha Lokayukta. The case revolves around the Lokayukta’s authority to direct a preliminary inquiry into corruption allegations against a sitting Member of the Legislative Assembly (MLA). The Supreme Court reinstated the Lokayukta’s order, which had been overturned by the Orissa High Court.

The case began when Mr. Ranjan Kumar Das, Deputy Superintendent of Police, Vigilance Cell Unit, Bhubaneswar, filed a complaint against Dr. Pradeep Kumar Panigrahi, the elected MLA of Gopalpur Constituency. The complaint contained serious allegations of corruption, and supporting documents were submitted. Based on this, the Lokayukta, under Section 20(1) of the Odisha Lokayukta Act, 2014, directed the Directorate of Vigilance, Odisha, to conduct a preliminary inquiry and submit a report within two months.

Background of the Case

Dr. Panigrahi challenged this order before the Orissa High Court under Article 226 of the Constitution. The High Court set aside the Lokayukta’s directive, ruling that entrusting the Directorate of Vigilance with the inquiry was not in line with the Odisha Lokayukta Act. The Lokayukta’s review petition was also dismissed without a detailed explanation. This prompted the Lokayukta to approach the Supreme Court.

Legal Framework: Odisha Lokayukta Act, 2014

The Odisha Lokayukta Act, 2014, provides for the establishment of a Lokayukta in Odisha to investigate allegations of corruption against public servants. The Act grants the Lokayukta the power to order preliminary inquiries and investigations into complaints of corruption.

Section 20(1) of the Act states:

“The Lokayukta, on receipt of a complaint, if it decides to proceed further, may order—
(a) preliminary inquiry against any public servant by its Inquiry Wing or any agency to ascertain whether there exists a prima facie case for proceeding in the matter; or
(b) investigation by any agency or authority empowered under any law to investigate, where there exists a prima facie case.”

This provision clearly empowers the Lokayukta to conduct a preliminary inquiry through its inquiry wing or any agency, including the Directorate of Vigilance.

Arguments of the Appellant (Odisha Lokayukta)

The Lokayukta was not given an opportunity to be heard by the High Court, which violated the principles of natural justice.
Section 20(1) of the Act allows the Lokayukta to order a preliminary inquiry through its own inquiry wing or any agency, which includes the Directorate of Vigilance.
The High Court’s interpretation of the law was incorrect as it overlooked the Lokayukta’s statutory powers.
The preliminary inquiry was only meant to determine whether a prima facie case existed; no prejudicial action had been taken against Dr. Panigrahi.

Arguments of the Respondent (Dr. Pradeep Kumar Panigrahi)

The Lokayukta’s directive was biased as the complaint itself was filed by an officer of the Directorate of Vigilance.
Entrusting the Directorate of Vigilance to conduct the preliminary inquiry was improper as it led to a conflict of interest.
The High Court’s ruling was justified as the Lokayukta did not have the authority to delegate the inquiry to the Directorate of Vigilance.

Supreme Court’s Ruling

The Supreme Court found that the High Court erred in setting aside the Lokayukta’s order without giving it a hearing. The Court observed:

“The Division Bench of the High Court has committed a manifest error in setting aside the order of the Lokayukta dated 11th December, 2020, without affording an opportunity of hearing to the appellant, which is in violation of the principles of natural justice.”

The Court further clarified that Section 20(1) of the Odisha Lokayukta Act, 2014, explicitly empowers the Lokayukta to conduct a preliminary inquiry through its inquiry wing or any agency, including the State Vigilance Department.

Additionally, the Court rejected the argument that there was bias in the investigation process. The judges noted:

“The rule against bias ensures a fair procedure by excluding decision-makers who are tainted by bias. However, in this case, the officer who submitted the complaint was not the one conducting the preliminary inquiry. The inquiry was conducted independently by a senior officer.”

Implications of the Judgment

The Supreme Court’s ruling has significant implications for corruption investigations in India. It reinforces the authority of the Lokayukta in ordering preliminary inquiries and ensures that procedural fairness is upheld. The judgment also establishes that an agency conducting a preliminary inquiry does not necessarily imply bias, provided the process is conducted independently.

Conclusion

The Supreme Court’s judgment reaffirms the authority of the Odisha Lokayukta in tackling corruption among public officials. The ruling also emphasizes the importance of procedural fairness, ensuring that all parties are heard before judicial decisions are made. By reinstating the Lokayukta’s order, the Supreme Court has upheld the statutory powers granted under the Odisha Lokayukta Act, 2014.

Petitioner Name: Office of the Odisha Lokayukta.
Respondent Name: Dr. Pradeep Kumar Panigrahi.
Judgment By: Justice Ajay Rastogi, Justice Bela M. Trivedi.
Place Of Incident: Odisha.
Judgment Date: 23-02-2023.

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