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Karnataka: Senior IPS Officer Seeks Bail Amid Explosive Lokayukta Extortion Scam Involving Crores in Crypto – Know the Case

With at least 35 extortion cases impersonating Lokayukta officials reported across Karnataka, the investigation into the latest scandal continues
Indian Masterminds Stories

In a startling development shaking Karnataka’s anti-corruption machinery, Mr. Joshi Srinath Mahadev, a serving IPS officer, has sought anticipatory bail from a Bengaluru sessions court after being linked to a massive extortion racket allegedly operated from within the Karnataka Lokayukta police unit. The 53-year-old officer, a 2012-batch promotee, was serving as the Superintendent of Police for the Lokayukta’s Bengaluru City-1 Division until his sudden transfer on June 12. His bail plea follows police searches at his residence and a summons for questioning in connection with a scam that has exposed deep fissures in the state’s anti-corruption policing.

Also Read: Dr. Sunil Gupta Appointed DIG in Bureau of Police Research and Development

The case came to light after the arrest of a dismissed police constable, Ningappa Savant alias Ningappa G, 45, on June 2. Ningappa is accused of extorting over Rs. 4.15 crore from numerous government officials in departments such as transport and excise by posing as a Lokayukta officer and threatening raids. He allegedly misused photographs and names of senior Lokayukta officials—including retired High Court Judge B.S. Patil—on WhatsApp to lend credibility to his threats. Police said Ningappa regularly visited Mr. Mahadev’s office, and during interrogation, he claimed that a portion of his seized cryptocurrency assets—spread across 13 wallets—belonged to Mr. Mahadev.

The police revealed that Ningappa had used multiple fake SIM cards and phones to create a web of deception. His extorted earnings were invested in crypto assets, now frozen and transferred to official crypto wallets for investigation. The FIR also mentions Ningappa’s use of WhatsApp calls, display pictures of real Lokayukta officials, and fabricated contact lists to intimidate officials and extract money. In one recent case, he allegedly used the photo of SP K. Vamshi Krishna (2009-batch IPS officer) to make extortion calls to an RTO officer in Tumkur.

Despite being summoned by the Lokayukta police, Mr. Mahadev sought more time to appear, citing a family function. Meanwhile, the Karnataka High Court has stayed the FIR against Ningappa following a petition from his legal team, while his wife claims he was illegally detained two days before his official arrest date.

This scam is reminiscent of earlier controversies surrounding the Lokayukta institution. The Karnataka Lokayukta was reinstated as the state’s chief anti-corruption agency in August 2022 after the High Court scrapped the state-controlled Anti-Corruption Bureau (ACB), terming it ineffective. Ironically, the ACB had been created in 2016 during the Congress government amid a similar scandal involving then Lokayukta Justice Bhaskar Rao and his son Ashwin Rao.

With at least 35 extortion cases impersonating Lokayukta officials reported across Karnataka, the investigation into the latest scandal continues. The role of Mr. Mahadev and potential complicity of other officials are under scrutiny as investigators analyze seized digital devices, call records, and WhatsApp chats. The case casts a shadow over ongoing efforts to rebuild credibility in Karnataka’s fight against corruption.

Also Read: Tamil Nadu: Senior IPS Officer of ADGP Rank Suspended Following Alleged Involvement in Minor’s Abduction – Know More


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