The Enforcement Directorate’s probe into the Karnataka Public Service Commission recruitment fraud has widened beyond the veterinary officers examination, with the agency alleging that payments were made to officials involved in several KPSC examinations conducted in recent years. A special Prevention of Money Laundering Act court in Bengaluru on Saturday extended the custody of suspended IAS officer Gyanendra Kumar Gangwar by eight days, until October 3.
Gangwar, the former KPSC exam controller, was arrested in connection with the alleged leak of question papers for the recruitment of 400 veterinary officers. The ED told the court that his interrogation and material seized during searches had opened new lines of investigation into a broader money-laundering conspiracy. The agency submitted its findings in a sealed envelope, and the court recorded that further interrogation was required for verification and confrontation.
The ED alleged that Gangwar disclosed that several officials collected bribes to influence candidate selections during examination and interview stages. The agency also said that searches at an official’s property revealed evidence of payments connected to other examinations. The claims extend the investigation beyond the Karnataka CID’s initial probe into the veterinary officers recruitment case.
According to the agency, Gangwar facilitated deposits totalling Rs 26 lakh into the bank accounts of two relatives last year without explaining the source of the funds. The ED is also seeking to recover the device allegedly used to copy the question paper, identify other beneficiaries, examine financial transactions and trace documents linked to gold purchases worth Rs 23 lakh.
The agency has alleged that Gangwar admitted leaking between 70 and 80 questions, along with their answers, to middleman Basavaraj Kannale through a pen drive on January 7, a day before the veterinary officers examination began. Gangwar reportedly said he believed the questions would reach one or two people, but later learned that Kannale distributed them to 10 candidates. The allegations have not been established in court, and Gangwar has denied claims that Kannale paid him Rs 1.30 crore or sponsored jewellery purchases.
The court also issued a fresh production warrant for Kannale, who allegedly collected between Rs 20 lakh and Rs 40 lakh from 20 aspirants for leaked question papers. The Karnataka CID had earlier reported that Rs 52 lakh collected from candidates was used to buy expensive jewellery for Gangwar’s girlfriend at a Bengaluru showroom. Investigators also alleged that the candidates were housed in four Airbnb villas on Bengaluru’s outskirts on the eve of the examination, where they received the leaked papers before being taken to examination centres.
The recruitment process involved 1,400 candidates competing for 400 government vacancies, with 329 eventually selected. The case came to light after unsuccessful candidate Dr S Manjunath filed an FIR on July 24, alleging that 29 candidates with poor academic records scored more than 450 out of 600 marks. The roles of suspended KPSC chairman Sahukar Shivashankarappa and other members in the alleged laundering of proceeds remain under investigation.
The ED’s extended custody will be used to pursue the alleged money trail, locate the device linked to the paper leak, identify other beneficiaries and examine the involvement of officials in additional KPSC examinations. Gangwar is scheduled to remain in agency custody until October 3.
