He was sworn-in at the Raj Bhawan here, they said.
The function was presided over by state Chief Secretary Lalnunmawia Chuaungo, younger brother of the new Lokayukta chairman.
After returning to Bihar, he was made the vigilance commissioner of the state, the official said, adding, he retired in 2015.
The Lokayukta would function from a rented building here.
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