Karnataka job fraud case: ED gets extended custody of IAS officer, alleges wider fraud

IAS officer Gyanendra Kumar Gangwar, who was the Karnataka Public Service Commission exam controller from 2024 to March 2026, was arrested on August 29. (File Photo)

The Enforcement Directorate (ED) has claimed to have found evidence of widespread fraud involving multiple exams and officials after interrogating arrested IAS officer Gyanendra Kumar Gangwar in connection with the Karnataka Public Service Commission (KPSC) veterinary doctors recruitment.

During a hearing seeking an extension of custody for the former KPSC exam controller, who was taken into custody for six days on September 21, the agency submitted its findings in a sealed envelope to a special Prevention of Money Laundering Act (PMLA) court on Saturday. The agency revealed a larger conspiracy extending beyond the recruitment of 400 veterinary officers to other exams conducted by the KPSC in recent years.

“Disclosures have opened new lines of probe which require verification and confrontation, making further interrogation necessary,” the special court noted while summarising the plea.

The agency said it found evidence of payments to KPSC officials for other examinations during searches at an official’s property. Gangwar further disclosed during questioning that multiple officials collected bribes to facilitate candidate selections during examination and interview stages.

“The findings extend beyond the CID’s initial probe into the veterinary officers recruitment case,” ED prosecutors Madhu N Rao and Maheshwari D M told the court. Analysis of material seized from a KPSC official’s residence last month confirmed widespread involvement in bribery.

The agency stated that Gangwar facilitated deposits totalling Rs 26 lakh into the bank accounts of two relatives last year without explaining the source of funds. The suspended IAS officer also admitted leaking 70 to 80 questions with answers for the veterinary officers exam held on January 8 and 9 to middleman Basavaraj Kannale on January 7 using a pen drive. Gangwar claimed he obtained the draft questions under the impression they would reach one or two individuals, but later learned Kannale distributed them to 10 candidates.

Seeking extended custody, ED prosecutors argued it was necessary to recover the device used to copy the question paper, identify other beneficiaries, investigate financial transactions, trace documents for gold purchases worth Rs 23 lakh, and verify the proceeds of crime. Defence counsel Siri R opposed the extension, arguing the agency could not expand its investigation beyond the predicate case and cited a lack of incriminating material.

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The special court granted an eight-day extension of Gangwar’s custody to October 3.

Production warrant for middleman

The court also issued a fresh production warrant for middleman Basavaraj Kannale, who allegedly collected bribes ranging from Rs 20 lakh to Rs 40 lakh from 20 aspirants to supply leaked question papers. The agency previously cited Kannale’s statements, alleging he paid Rs 1.30 crore in cash to Gangwar and sponsored his jewellery purchases, to secure custody under PMLA. Gangwar has denied the payment claims.

Before the High Court directed the setup of an SIT, the Karnataka CID reported in court that Rs 52 lakh collected from aspirants by Kannale was used to buy expensive jewellery for Gangwar’s girlfriend at a Bengaluru showroom.

Probes revealed that 20 candidates were housed at four Airbnb villas rented by Kannale on the outskirts of Bengaluru on the eve of the exams, where they received leaked question papers before being transported to exam centres. Out of 1,400 candidates who appeared for the 400 government vacancies, 329 were selected. The role of suspended KPSC chairman Sahukar Shivashankarappa and other members in laundering the proceeds of fraud remains under investigation.

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The matter came to light after an FIR was filed on July 24 by an unsuccessful candidate, Dr S Manjunath, who noted that 29 candidates with poor academic records scored above 450 out of 600 marks to secure selection.