Karnataka HC allows Lokayukta probe into aided private school staff on government referral

Bengaluru: The Lokayukta can conduct an inquiry against an employee of a private educational institution if it is aided by the government and if the government refers the matter under Rule 14A of the Karnataka Civil Services (Classification, Control and Appeal) Rules (CCA Rules), 1957, according to the high court. 

A division bench comprising Justices D K Singh and Venkatesh Naik T passed the order while dismissing the petition filed by a retired librarian at a grant-in-aid institution. 

B Lakshminaraya is a librarian-cum-clerk at Sri Balanjaneya High School, Byrashettihalli, Nelamangala taluk, Bengaluru Rural district. 

In 2013, a complaint filed against him in the Lokayukta stated that in January 2004 and 2005, he and four others jointly purchased lands in Vajarahalli village and in Nelamangala town without obtaining the necessary permission from the management. 

It was further alleged that Lakshminarayana entered into an agreement of sale for the land in Vajarahalli for Rs 3.83 crore and received Rs 2.83 crore as his share. According to the complaint, Lakshminarayana failed to declare these transactions in his assets and liabilities statements submitted to his higher authorities for any 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. 

The petitioner contended that since he was an employee of a private aided educational institution, the provisions of the CCA rules are not applicable and he is not a public servant. 

He further submitted that it is for the management of the institution to take disciplinary action against its employees. 

The division bench observed that the high court on many occasions had held that the employees of educational institutions that receive government aid are considered akin to government employees for certain purposes. 

The rationale is that their salaries and service conditions are often regulated and funded by the state government, even if the institution is privately managed, the bench said, ruling that both the Lokayukta report under Section 12(3) of the Lokayukta Act and the order passed by the state government under Rule 14A of CCA Rules are tenable
in law. 

“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 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. Thus, there is no error in continuing with the inquiry proceedings against the petitioner,” the bench said, adding that the petitioner is permitted to raise other contentions before the inquiry officer.