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Shetty was administered the oath of office by Governor Vajubhai R Vala at a ceremony at Raj Bhavan.
Chief Minister Siddaramaiah, state ministers, judges of the High Court and senior officials were present at the ceremony.
The Governor had given his assent to Shetty’s appointment on Thursday after the government replied to clarifications sought by him.
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The post had remained vacant since Y Bhaskar Rao, a former High Court Chief Justice, stepped down in December 2015 amid public pressure to quit over an alleged bribery scandal involving his office and son.