The Cabinet finally cleared the Lokpal and Lokayukta bill on Tuesday evening, but their key formulations were promptly slammed by both Team Anna and the opposition. Anna Hazare and the government were set for a showdown after the cabinet Tuesday finalised its Lokpal bill bringing the prime minister under its ambit but leaving out two other key demands of the activists -- inclusion of the CBI and the lower bureaucracy. A furious Hazare dubbed the government 'dishonest' and vowed a hunger strike from Dec 27.

Capping weeks of intense internal debate within the government and the Congress party, the cabinet, chaired by Prime Minister Manmohan Singh, approved the bill after an hour-long meeting in the parliament house.

The Lokpal, which would have a constitutional status, will be selected by a panel including the prime minister, the Lok Sabha speaker, the leader of the opposition in Lok Sabha, an eminent jurist and the Chief Justice of India or his nominee.

With regard to government employees, all categories including group C and D, will be subject to the Lokpal's jurisdiction. With regard to A and B category officials, the CVC has to report to the Lokpal that will mean mandatory filing of preliminary enquiries (PEs) and reporting status of investigations Lokpal. Under the bill's provisions, CVC cannot close investigations against officers belonging to the two senior categories.

With regard to Group C and D, Lokpal can ask CVC to investigate cases.  CVC can investigate cases against C&D on its own as well. It can also refer the cases to CBI on its own. The bill requires CVC to report the status of its investigations after 60 days and submit a report every quarter.

The Lokpal will also have a wing to conduct preliminary inquiries -- that is to sort through grievances -- and a prosecution department.

The bill brings the prime minister under the anti-graft ombudsman with riders, but accepts only one point - appointment of Lokayuktas in states - from the sense of the house resolution conveyed to Hazare in August this year but keeps out both the Central Bureau of Investigation (CBI) and the lower bureaucracy.

Hazare, 74, reacted furiously to the government's announcement, terming the bill weak and alleging that the government's intentions were suspect. He said there was no way to get a strong Lokpal except through protests. He said there would also be a 'jail-bharo' agitation throughout the country Dec 30-31.

Team Anna member Arvind Kejriwal said the government had 'cheated the people by excluding the CBI'.

The bill is likely to be introduced and put up for consideration and passage in Lok Sabha Dec 22, the scheduled last day of the winter session.

This means the parliament may be extended just for a day for this purpose.