Bengaluru: The Enforcement Directorate (ED) has told a special court that suspended Karnataka Public Service Commission (KPSC) chairman Shivashankarappa Sahukar was planning a project worth approximately ₹35 crore in his hometown of Shahpur in Yadgir district. The proposed complex reportedly included a school, hostel, playground, shopping mall and convention hall.
The agency presented these details while opposing the bail applications of Sahukar, 62, and KPSC member B V Geetha, who were arrested in connection with the alleged recruitment examination scam.
Arguments from both sides concluded before the special court, which reserved its order on the bail applications.
According to the ED, architectural plans for the proposed development were recovered during the investigation. The project was reportedly planned on land registered in the name of Sahukar’s wife.
The agency also pointed to the alleged connection between the proposed school and the recruitment case, stating that a parent of a candidate who allegedly paid a bribe for leaked answer keys in the veterinary officers’ examination had been identified as the proposed school’s caretaker.
₹35-Crore Project in Sahukar’s Hometown Under ED Scrutiny
During the bail proceedings, the ED highlighted the proposed development in Shahpur as part of its investigation into Sahukar’s financial dealings.
The planned complex reportedly comprised:
- School: An educational institution proposed as part of the development.
- Hostel: Residential facilities associated with the proposed school.
- Playground: Sports and recreational infrastructure.
- Shopping mall: A commercial development.
- Convention hall: A facility for public and institutional events.
The agency said architectural drawings relating to the proposed facilities had been recovered. It also referred to the land being registered in the name of Sahukar’s wife.
The ED’s submissions placed the proposed project alongside its wider investigation into alleged cash transactions and the suspected use of proceeds linked to corruption in KPSC recruitment.
Alleged Answer-Key Leak in Veterinary Officers’ Examination
The case centres on allegations that answer keys for the veterinary officers’ recruitment examination conducted by KPSC in January 2026 were leaked to candidates in exchange for money.
According to the ED, Sahukar and Geetha allegedly provided examination answer keys to nine aspirants ahead of the January 9 examination.
The agency alleged that bribes ranging from ₹10 lakh to ₹40 lakh were paid in connection with the leaked answers.
The ED made the following allegations regarding two candidates:
- Third-ranked candidate: Sahukar allegedly received ₹10 lakh from the candidate’s parent as part of a ₹20-lakh deal.
- First-ranked candidate: Geetha allegedly received ₹20 lakh from the candidate as part of a ₹40-lakh arrangement.
The investigation has also examined the alleged involvement of former KPSC examination controller and IAS officer Gyanendra Kumar Gangwar, along with other intermediaries.
ED Probes Alleged Cash Transactions Exceeding ₹10 Crore
Another major aspect of the investigation concerns alleged financial dealings between Sahukar and Bengaluru-based real estate businessman S P Dayanand.
The ED told the court that it was examining cash transactions exceeding ₹10 crore between the two.
According to the agency:
- Approximately ₹4.99 crore was allegedly transferred between August and December 2025.
- The overall transactions between Sahukar and Dayanand reportedly exceeded ₹10 crore.
- Searches conducted at Sahukar’s residence between August 18 and 24 reportedly yielded a notebook and loose sheets containing details of examination candidates and cash dealings.
- The agency alleged that substantial transactions took place outside formal banking channels.
The ED has cited these transactions as part of its money-laundering investigation linked to the alleged recruitment irregularities.
What Sahukar and Geetha Argued in Their Bail Applications
During the hearings, defence counsel challenged the ED’s grounds for opposing bail.
Sahukar’s counsel, C H Hanumantharaya, argued that his client qualified for bail under the Prevention of Money Laundering Act (PMLA), contending that he was not accused of personally receiving more than ₹1 crore in proceeds of crime.
The ED opposed this interpretation. Its counsel, Maheshwari D M, argued that the statutory threshold could be determined only after the prosecution complaint was filed and should not be assessed by considering the alleged payment from a single candidate in isolation.
The agency maintained that the alleged corruption and financial transactions needed to be examined as part of the wider recruitment process.
Geetha’s defence counsel sought special consideration under the PMLA on the ground that she was a woman.
The ED opposed the request, arguing that Geetha was not being unfairly implicated. It also referred to her background as a non-practising advocate who had previously served as a prosecutor for the Karnataka Lokayukta.
The court reserved its order after hearing the arguments from both sides.
Karnataka High Court Reconstitutes SIT, Appoints R Hitendra as Head
The ED proceedings come amid parallel investigations by the Karnataka Criminal Investigation Department (CID) and a Special Investigation Team (SIT).
On November 2, the Karnataka High Court reconstituted the SIT investigating alleged irregularities in two KPSC recruitment cases and appointed Additional Director General of Police (ADGP) R Hitendra as its head.
The court also appointed ADGP Soumendu Mukherjee to the team in place of IPS officer Divya V Gopinath. The other three members retained their positions.
The High Court directed that the ED and SIT investigations should complement each other and proceed within their respective statutory jurisdictions.
The reconstitution followed the Supreme Court’s October 13 order, which upheld the formation of the SIT but modified the earlier direction for a fresh investigation. The team is to continue the probe from the stage at which the previous investigating agency had left it.
The CID is expected to file its chargesheet in the veterinary officers’ recruitment case by November 26.
Two KPSC Recruitment Cases Under Investigation
The broader investigation concerns two alleged recruitment-related irregularities involving the Karnataka Public Service Commission.
One case relates to the recruitment of 400 veterinary officers to state services. Investigators have examined allegations that candidates obtained examination questions and answers in exchange for bribes.
The second case concerns the alleged irregular selection of Sahukar’s daughter for a government post.
The investigations have brought several individuals, including Sahukar, Geetha, Gangwar and alleged intermediaries, under scrutiny.
With the ED examining financial transactions and the reconstituted SIT continuing the recruitment-related investigation, the case has expanded beyond the alleged veterinary examination leak to wider questions about irregularities in KPSC’s recruitment processes.
