Bengaluru: The Karnataka High Court has clarified that the Lokayukta can conduct an inquiry against employees of private educational institutions if they are aided by the government and the state refers the matter under Rule 14A of the Karnataka Civil Services (Classification, Control and Appeal) Rules (CCA Rules), 1957.
A division bench comprising Justices D K Singh and Venkatesh Naik T passed the order while dismissing a petition filed by a retired librarian of a grant-in-aid institution. The case involved B Lakshminaraya, a librarian-cum-clerk at Sri Balanjaneya High School in Byrashettihalli, Nelamangala taluk, Bengaluru Rural district.
Background of the complaint
In 2013, a complaint was filed with the Lokayukta stating that Lakshminarayana, along with four others, had purchased lands in Vajarahalli village and Nelamangala town in January 2004 and 2005 without obtaining necessary permission from the management. The complaint further alleged that Lakshminarayana entered into an agreement of sale for the Vajarahalli land for Rs 3.83 crore and received Rs 2.83 crore as his share.
It was also alleged that he failed to declare these transactions in his assets and liabilities statements submitted to his higher authorities for the relevant income tax assessment years. The Lokayukta submitted a report to the state government in September 2016, and in January 2017, the state entrusted the inquiry to the Lokayukta under the CCA rules.
Petitioner’s argument
Lakshminarayana contended that, being an employee of a private aided educational institution, the provisions of the CCA rules were not applicable to him. He argued that only the management of the institution could take disciplinary action against its employees, not the Lokayukta.
Court’s ruling
The division bench observed that, in multiple cases, the high court had held that employees of aided educational institutions are considered akin to government employees for certain purposes. This is because their salaries and service conditions are often regulated and funded by the state government, even if the institution is privately managed.
The bench upheld that both the Lokayukta report under Section 12(3) of the Lokayukta Act and the state government’s order under Rule 14A of the CCA Rules are legally tenable. The court noted, “The Lokayukta, while submitting its report under Section 12(3) of the Act, has discussed the complaint against the petitioner in detail and come to a prima facie conclusion that the petitioner has not submitted his assets and liabilities statements for the particular income tax assessment years. Thus, it came to the conclusion that the petitioner purchased certain lands and sites without permission of the higher authority, which is mandatory under law. There is no error in continuing with the inquiry proceedings against the petitioner.”
The bench also clarified that the petitioner is allowed to raise other contentions before the inquiry officer during the proceedings.
Conclusion
The ruling reinforces the scope of the Lokayukta in investigating employees of private educational institutions receiving government aid, highlighting the importance of regulatory compliance for such staff. Experts note that this decision could set a precedent for similar cases across Karnataka, ensuring greater accountability in grant-in-aid institutions.