The Lokayukta and Upalokayukta Act is a legislation that establishes the institution of Lokayukta (Ombudsman) and Upalokayukta (Deputy Ombudsman) in a state to investigate complaints of corruption and maladministration against public servants.

The correct answer is option 'C', Maharashtra, where the Lokayukta and Upalokayukta Act was first passed.

Here is a detailed explanation:

1. Introduction to the Lokayukta and Upalokayukta Act:
The Lokayukta and Upalokayukta Act is a state-level legislation that aims to provide an independent and impartial mechanism to inquire into complaints against public servants in matters of corruption, maladministration, and abuse of power. The institution of Lokayukta acts as a watchdog to ensure transparency, accountability, and integrity in public administration.

2. The Purpose and Objective of the Act:
The Lokayukta and Upalokayukta Act was enacted to address the rising concerns of corruption and maladministration in public offices. It aims to provide an accessible and efficient mechanism for citizens to report cases of corruption and seek redressal. The Act empowers the Lokayukta and Upalokayukta to conduct investigations, recommend actions, and impose penalties on public servants found guilty of corruption or misconduct.

3. The Role of Lokayukta and Upalokayukta:
The Lokayukta is an independent authority appointed by the state government to inquire into complaints against public servants. The Lokayukta can investigate allegations of corruption, maladministration, favoritism, nepotism, and abuse of power. The Upalokayukta, on the other hand, assists the Lokayukta in carrying out investigations and performs similar functions.

4. Implementation of the Act in Maharashtra:
The Lokayukta and Upalokayukta Act was first passed in Maharashtra in 1971. The state government recognized the need for an independent body to combat corruption and ensure accountability in public administration. Maharashtra became the first state to establish the institution of Lokayukta and Upalokayukta, setting an example for other states to follow.

5. Subsequent Adoption in Other States:
After the successful implementation of the Act in Maharashtra, several other states followed suit and enacted similar legislation to establish the institution of Lokayukta and Upalokayukta. Gujarat, Delhi, and Rajasthan are among the states that have also passed the Lokayukta and Upalokayukta Act to combat corruption at the state level.

In conclusion, the Lokayukta and Upalokayukta Act was first passed in Maharashtra, making it the pioneer in establishing the institution of Lokayukta and Upalokayukta. The Act serves as a crucial tool to combat corruption and maladministration in public offices and has been subsequently adopted by other states as well.