ED gets complaint seeking probe into KPSC case

The Enforcement Directorate has received a complaint seeking a money laundering investigation into alleged corruption involving over ₹1,000 crore in Karnataka Public Service Commission (KPSC) recruitment, said an official aware of the matter. The complaint included claims of illicit proceeds that have allegedly been generated through bribery, examination manipulation and the sale of government jobs.

The complaint, received by ED’s Bengaluru Zonal Office on September 11 and was made public on Monday, seeks registration of an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act, 2002 (PMLA), and asked the agency to trace, freeze and attach assets allegedly acquired through the suspected racket.

“The unnamed complainant has alleged that the KPSC Gazetted Probationers examination for 2023-24 and other recruitment tests were affected by an organised network involving middlemen, KPSC staff, drivers, private coaching operators and other intermediaries. The alleged collections, according to the complaint, ran into tens of crores and involved candidates seeking posts such as Assistant Commissioner, Tahsildar and Deputy Superintendent of Police,” the officer said.

The allegations included bribery, extortion of interviewed candidates, question paper tampering and manipulation of OMR answer sheets.

The complaint focused on recruitment to 384 Group A and Group B Gazetted Probationer posts notified by the KPSC in February 2024 and February 2025. Of the vacancies, 310 were in the Residual Parent Cadre and 74 in the Kalyana Karnataka or Hyderabad-Karnataka cadre.

It alleged that the KPSC violated the prescribed 1:3 ratio for candidates called for the personality test. For 384 vacancies, 1,152 candidates should have been shortlisted, the complaint said. Instead, 1,158 names were allegedly included, with six additional candidates added to accommodate people who had paid kickbacks.

The complaint asked ED to examine the alleged financial transactions and identify those involved, adding that the alleged offences could attract provisions of the Prevention of Corruption Act, 1988, as well as laws covering criminal conspiracy, cheating, breach of trust by public servants and extortion.

The allegations also covered recruitment of about 400 veterinary officers, where investigators have been examining claims of question paper leaks, nepotism and manipulation of OMR sheets to increase marks for favoured candidates.

The case has already led to action against senior KPSC officials. Chairman Shivashankarappa S Sahukar has been suspended, while IAS officer Gyanendra Kumar Gangwar, a former KPSC Controller of Examinations, has been arrested and questioned by CID’s Special Investigation Team.

Investigators are examining alleged financial transactions involving Gangwar, including a jewellery purchase worth about ₹26 lakh for a woman associated with him. According to the material provided, the woman, who is said to be from Ayodhya, was taken to a jewellery showroom on Dickenson Road in Bengaluru. Investigators have obtained the purchase receipt and CCTV footage from the showroom.

The woman has denied being part of the recruitment racket. She reportedly told investigators that she had lent ₹25 lakh to Gangwar and that the jewellery was given to her instead of repayment in cash. The CID has recorded her statement and is checking it against financial and documentary evidence.

Investigators are also examining deposits allegedly made by candidates into bank accounts operated in other people’s names. Transactions involving Lakshmi Souharda Cooperative Bank in Bidar are under examination, including an account reportedly held in the name of Basavaraj.

A villa near Kempegowda International Airport, reportedly purchased in the name of Kamalapati, Gangwar’s brother, is also being examined. Investigators have inspected the property and are checking its documents and the source of funds used for the purchase.