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Karnataka: Lokayukta Recommends Action Against IPS Officer in Rs5 Crore Crypto Extortion Case – Know the Case Here

Senior Officer Srinath Mahadev Joshi Linked to Dismissed Constable Accused of Impersonation and Money Laundering
Indian Masterminds Stories

BENGALURU: The Karnataka Lokayukta has recommended disciplinary action against 2012 batch IPS officer of Karnataka cadre, Mr Srinath Mahadev Joshi following a preliminary investigation that linked him to an extortion and cryptocurrency laundering racket worth nearly ₹5 crore.

In a letter dated July 3, the Lokayukta urged the Chief Secretary to initiate proceedings under the All India Services (Conduct) Rules, flagging serious misconduct during Joshi’s tenure as Superintendent of Police in the Lokayukta’s Bengaluru unit.

Read Also: Karnataka: No Anticipatory Bail for IPS Officer in Crypto Bribery Case; Lokayukta Court Orders Custodial Interrogation

Accused Maintained Contact with Dismissed Head Constable

Joshi is alleged to have maintained frequent contact with G Ningappa alias Ningappa Sawant, a dismissed head constable who impersonated Lokayukta officers to extort bribes from various government officials. Investigators found WhatsApp messages between the two, where code words such as “kg” were used to denote lakhs of rupees in bribes.

Joshi was in touch with Ningappa and involved in threatening officials to extort money. The black money was laundered through cryptocurrency investments,” the Lokayukta said in an official statement.

On June 15, Joshi’s residence was searched after authorities obtained a court warrant. While the Karnataka High Court has granted an interim stay on proceedings against both Joshi and Ningappa, the Lokayukta has moved the court seeking permission to resume investigations, citing the public interest involved. The matter is scheduled to be heard on Tuesday.

41 FIRs Filed; 35 Linked Directly to Ningappa

The scandal unraveled after Ningappa’s arrest nearly two weeks ago. He allegedly posed as a Lokayukta official to extort bribes from officers in departments like BBMP and Excise, threatening to initiate corruption cases unless money was paid. He often invoked the names of senior officials, including the Lokayukta and Upa Lokayukta, to lend credibility to his claims.

So far, 41 FIRs have been filed across Karnataka in connection with the racket. 35 of these are directly linked to Ningappa. Though no formal complaints were made initially, the Lokayukta launched a suo motu probe based on internal intelligence, subsequently filing an FIR under the Prevention of Corruption Act.

₹4.92 Crore Laundered via 13 Crypto Wallets

A financial trail uncovered that Ningappa operated 24 cryptocurrency wallets, of which 13 were active in transactions amounting to ₹4.92 crore. Investigators believe these wallets were used to convert extorted funds into digital assets, obscuring their illegal origin and converting black money into white.

Lokayukta Forms Internal Monitoring Wing

In response to the scandal, the Lokayukta has created an internal monitoring wing to oversee conduct within its own ranks. An earlier proposal to draw personnel from the defunct Anti-Corruption Bureau was rejected, but the agency has now formed a temporary unit and sought judicial officers to lead it.

With over 1,900 personnel and rising complaints—particularly against police officials—there’s a pressing need for ongoing internal vigilance,” a senior official said.

Read Also: Lokayukta Extortion Scandal in Karnataka: IPS Officer Named in WhatsApp Evidence Recovered from Accused

Public Advisory Against Impersonation

In parallel, the Lokayukta has issued a public advisory warning officials to be cautious of impersonators using its name to threaten or extort bribes. It urged those receiving suspicious calls or messages to report them via:

Misusing the Lokayukta’s name for extortion not only discredits the institution but hampers genuine anti-corruption efforts,” the statement emphasized.


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