The Odisha government has raised concerns over the growing financial burden caused by repeated legal defeats and irregular recruitment practices across various departments. In response, the Finance Department has issued a strict directive to Principal Secretaries, Secretaries, and Heads of Departments, urging them to improve legal compliance and administrative accountability.
According to official observations, several government departments have failed to defend cases effectively in courts, often missing deadlines or not responding on time. This has resulted in ex parte judgments against the state, forcing the government to pay large amounts in arrears and compensation, leading to significant financial losses.
To address the issue, the Finance Department has made it mandatory for departments to follow a detailed checklist before seeking financial approval for implementing court orders. The move is aimed at ensuring proper scrutiny and reducing avoidable expenses arising from legal disputes.
The department has also reminded officials to strictly follow the legal defence guidelines issued in 2017, noting that many departments have not been complying with them adequately.
Another major concern highlighted is the rise in illegal and backdoor appointments. Such appointments often lead to legal battles over regularisation in the High Court, consuming valuable government resources and taxpayer money. The Finance Department has warned all departments to adhere to established recruitment rules to prevent future litigation.
The government hopes that stricter compliance with legal procedures and transparent recruitment practices will help protect public funds and improve administrative efficiency.