Bengaluru: An apartment near Bengaluru airport allegedly purchased in the name of family members of arrested Gyanendra Kumar Gangwar (IAS: 2016: KA) has come under the Enforcement Directorate’s scrutiny in connection with the alleged Karnataka Public Service Commission (KPSC) recruitment racket.
Gangwar, 41, a former KPSC Controller of Examinations, is accused of facilitating the alleged leak of the Veterinary Officers’ Recruitment Examination paper in return for illegal gratification. The ED arrested Gangwar on September 18 after the Karnataka CID had arrested him on August 29. The agency has alleged that candidates paid ₹30 lakh to ₹40 lakh each to obtain access to the leaked paper and answers.
Apartment Near Bengaluru Airport Under Probe
The property under scrutiny is located at the Godrej Royal Woods complex near Devanahalli, close to Bengaluru International Airport. Investigators are examining whether money allegedly generated through the recruitment racket was used to purchase the apartment in the name of Gangwar’s brother.
The ED has told the special PMLA court that funds allegedly linked to the recruitment racket were routed through middleman Basavaraj Kannale and his associates for purchasing immovable property in the name of Gangwar’s brother, besides buying jewellery and meeting personal expenses.
A police source familiar with the investigation said:
“The (IAS officer’s) brother and family are unaware of the flat purchased in their name in Bengaluru. They never visited or used the property. It was used by the officer for parties and other activities since it provided privacy.”
ED Tracks Alleged Money Trail
The investigation into the KPSC recruitment case has expanded beyond the alleged paper leak to the movement and use of the money allegedly collected from candidates.
The ED has alleged that Gangwar provided the veterinary officers’ recruitment examination paper to Kannale before the examination. The agency says candidates were subsequently charged large sums for access to the leaked material.
Investigators have also traced alleged transactions involving jewellery and other expenses. Independent reports on the probe say approximately ₹52 lakh was allegedly routed through accounts linked to Kannale and his associates for the purchase of gold and diamond jewellery.
The ED is also examining an unexplained ₹26 lakh in cash deposits reportedly made between January and August 2025 into bank accounts linked to Gangwar’s brother and sister-in-law.
Other Assets Also Under ED Lens
The financial investigation has expanded to other assets allegedly connected to Gangwar.
The ED and CID are examining a semi-constructed house in Bareilly, reportedly purchased in 2025 for about ₹25 lakh, as well as a construction-related business started by Gangwar’s elder brothers in Uttar Pradesh in the same year.
Gangwar has reportedly told investigators that part of the money he received from Kannale was used to purchase the flat in his brother’s name and to buy jewellery for a female friend. The ED is examining these claims alongside the wider financial trail.
Probe Expands Beyond Veterinary Officer Recruitment
The alleged KPSC irregularities are no longer limited to the January 2026 Veterinary Officers’ Recruitment Examination.
The ED has told the special PMLA court that its investigation has indicated a wider network involving other KPSC recruitment examinations. Investigators have also examined material suggesting possible manipulation of candidate shortlists in other recruitment processes during Gangwar’s tenure as examination controller.
The veterinary recruitment examination was conducted on January 8 and 9, 2026, for 400 posts. The investigation began after allegations of irregularities in the selection process and subsequently led the CID and ED to examine the alleged paper leak, candidate payments and related financial transactions.
Gangwar Suspended by Karnataka Government
Gangwar was serving as KPSC Controller of Examinations from 2024 until March 2026 and was subsequently suspended by the Karnataka government following allegations of irregularities in the recruitment process.
The ED has accused him of misusing his position to facilitate the alleged leakage of confidential examination material. Gangwar has been arrested in the money-laundering investigation, but the allegations against him remain subject to the ongoing investigation and judicial proceedings.
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