Explanation:

• The Lokayukta is the Indian Parliamentary Ombudsman, executed into power, through and for, each of the State Governments of India. It is brought into effect in a state, after passing the Lokayukta Act in the respective state Legislature and a person of reputable background is nominated to the post. The post is created to quickly address grievances against the working integrity and efficiency of the government or its administration (public servants). Once appointed, Lokayukta cannot be dismissed or transferred by the government, and can only be removed by passing an impeachment motion by the state assembly, making it a powerful deterrent against corruption and maladministration of the governing system.
• Even much before the enactment of the Lokpal and Lokayuktas Act (2013) itself, many states had already set up the institution of Lokayuktas. It must be noted here that the institution of lokayukta was established first in Maharashtra in 1971. Although Odisha had passed the Act in this regard in 1970, it came into force only in 1983. Hence, statement 1 is correct.
• The lokayukta and upalokayukta are appointed by the governor of the state. While appointing, the governor in most of the states (varies from state to state) consults
o the chief justice of the state high court, and
o the leader of the Opposition in the state legislative assembly.
o the speaker of the legislative assembly (optional)
o In case the state has a legislative council, the chairman of the legislative council and the leader of the opposition of the legislative council are also consulted
o Hence, statement 2 is not correct.
• The recommendations made by the Lokayukta are only advisory and not binding on the state government. Hence, statement 3 is correct.