The Administrative Reforms Commission recommended the establishment of the institutions of Lokpal and Lokayukta.

The Administrative Reforms Commission (ARC) was constituted in 1966 under the chairmanship of Morarji Desai, the then Prime Minister of India. Its main objective was to suggest measures for improving the efficiency and effectiveness of the government machinery.

Recommendation of the ARC
Under its fourth report, the ARC recommended the establishment of the institution of Lokpal at the central level and Lokayukta at the state level. The ARC proposed the creation of these institutions to tackle corruption and ensure accountability in public administration.

Significance of the Lokpal and Lokayukta
The Lokpal and Lokayukta are anti-corruption ombudsman institutions that provide a mechanism for citizens to lodge complaints against public functionaries, including the Prime Minister, ministers, MPs, and public servants. These institutions are vested with the power to investigate and prosecute cases of corruption.

Implementation of the Lokpal and Lokayukta
Based on the recommendations of the ARC, the Lokpal and Lokayukta Act was passed by the Parliament in 2013. This Act provides for the establishment of a Lokpal at the central level and Lokayuktas at the state level.

The Lokpal is a multi-member body consisting of a chairperson and up to eight members. The chairperson and members are appointed by the President of India on the recommendation of a selection committee consisting of the Prime Minister, Speaker of the Lok Sabha, Leader of the Opposition in the Lok Sabha, Chief Justice of India or a judge nominated by him, and an eminent jurist nominated by the President.

The Lokayuktas are also multi-member bodies with a chairperson and members. The appointment and composition of Lokayuktas vary across states as per their respective Lokayukta Acts.

Conclusion
The establishment of the institutions of Lokpal and Lokayukta was recommended by the Administrative Reforms Commission to address the issue of corruption and ensure transparency and accountability in public administration. These institutions play a crucial role in combating corruption and protecting the interests of the citizens.