New Delhi/Cuttack, Aug. 17: The Supreme Court today dismissed the Naveen Patnaik government's appeal against an Orissa High Court order quashing the vigilance case registered against CRPF director-general Prakash Mishra.

In a terse order, the bench of Justice J. Chelameshwar and Justice A.M. Sapre dismissed the state's appeal as "without any merit" thus upholding the high court's order in this regard.

Reacting to the development, Mishra said he was happy that the court had upheld his innocence in the matter.

The state vigilance had registered an FIR against Mishra on September 20 last year for alleged undue favours shown to various steel and cement suppliers during his tenure as chairman-cum-managing director of the Odisha Police Housing and Welfare Corporation between 2006-07 and 2009-10.

It was alleged that undue favours had been shown by way of making 100 per cent advance payments of Rs 57.86 crore prior to the supply of cement and steel within the stipulated period. Mishra had challenged it in the high court.

The vigilance case had reportedly marred Mishra's prospects of being appointed as the CBI director. The high court had quashed the case against Mishra, holding that it was a case of victimisation on June 19 this year. The high court had said materials pointed out by the vigilance department "do not constitute or disclose cognisable offence".

The single-judge bench of Justice S.C. Parija had said it was not very uncommon in our country that the ruling political establishments often hounded the honest and upright public servants with unimpeachable integrity and having impeccable track record for extraneous considerations.

In his 51-page judgment, Justice Parija had said: "The action or rather the wilful inaction of the director vigilance, in not ensuring free, fair and proper inquiry into the matter and allowing the report of a sham inquiry to be accepted and giving his consent for seeking approval of the state government for registration of criminal case against the petitioner (Prakash Mishra) clearly shows that he was more concerned in exhibiting his loyalty to the ruling political establishment, akin to the old British adage of more loyal than the king".

Justice Parija had further observed: "There is no manner of doubt that the vigilance authorities have proceeded in the matter with a predetermined agenda to implicate the petitioner (Prakash Mishra), irrespective of whether any material is available to substantiate the allegations. The enquiry officer has conducted the preliminary inquiry in a most perfunctory manner, in brazen disregard of all established norms of justice and fair play.... Hence, the entire action of the vigilance authorities smacks of arbitrary and mala fide exercise of power with the oblique motive to harass the petitioner (Prakash Mishra) and damage his reputation".

The state government had, in December 2013, placed Mishra's name in the offer list for central deputation, but subsequently withdrew the offer citing acute shortage of officers in the IPS cadre.

Though Union home minister Rajnath Singh had in last July sought Mishra's services for the post of special secretary in the ministry of home affairs, the state government shifted him to a seemingly irrelevant post of the chairman-cum-managing director of the Odisha State Road Transport Corporation.