The LokAyukta (also Lok Ayukta) is an anti-corruption ombudsman organization in the Indian states^[1][2]. These institutions were to be set up on the pattern of the institution of Ombudsman in Scandinavian countries and Parliamentary Commissioner for Investigation in New Zealand.

The Administrative Reforms Commission(ARC) headed by Morarji Desai submitted a special interim report on "Problems of Redressal of Citizen's Grievances' in 1966. In this report, the ARC recommended the setting up of two special authorities designated as 'Lokpal' and 'Lokayukta' for the redressal of citizens' grievances.

The LokAyukta helps people bring corruption to the fore mainly amongst the politicians and officers in the government service. It is to be noted that the LokAyukta conducts raids. But surprisingly, it does not have binding powers to punish anyone^[3]. Owing to this, many acts of the LokAyukta have borne not enough fruit since the raided officers manage to free themselves from the clutches of the Indian Law^[4].

http://en.wikipedia.org/wiki/Administrative_Reforms_Commission

The Administrative Reforms Commission or ARC is the committee appointed by the Government of India for giving recommendations for reviewing the public administration system of India. The first ARC was established on 5 January 1966.^[1] The Administrative Reforms Commission was initially Chaired by Morarji R Desai, MP, and later on K.Hanumanthaiah, MP became its chairman when Morarji R Desai, MP, became the Deputy Prime Minister of India.^[2] The Second Administrative Reforms Commission (ARC) was constituted on 31.08,2005, as a Commission of Inquiry, under the Chairmanship of Veerappa Moily for preparing a detailed blueprint for revamping the public administrative system.^[1]