The post of Madhya Pradesh Lokayukta had been lying vacant since June 2016 after the retirement of PP Naolekar, former Justice of Supreme Court.
Gupta, a retired judge of Madhya Pradesh High Court, was appointed as Lokayukta yesterday, the official said.
UC Maheshwari, former judge of MP High Court, who is six years senior to Gupta, was looking after the work of Lokayukta since June last year.
Maheshwari was administered the oath of office as Madhya Pradesh Deputy Lokayukta by the former Lokayukta P P Naolekar on June 28, 2016.
"I became MP High Court Judge in 2004 and he (Gupta) became judge in the year 2010," Maheshwari added.
Asked whether he plans to resign in the wake of the developments, Maheshwari said, "I will decide what to do later."
However, he didn't elaborate his next course of action.
Meanwhile, leader of opposition in the state assembly Ajay Singh said seniority has been given a toss in the appointment of Ombudsman.
He said traditionally, seniority was given pre-eminence in appointments in the state.
"I have also written a letter to Chief Minister Shivraj Singh Chouhan in this regard," Singh said.
"Congress is making out an issue for no rhyme or reason. This is not good for state politics," he added.
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