BENGALURU: The Enforcement Directorate (ED) has intensified its investigation into suspected illegal monetary transactions linked to an alleged scam in the Karnataka Public Service Commission (KPSC) veterinary officer recruitment examination.
The development follows an investigation by the Criminal Investigation Department (CID), which had earlier arrested suspended IAS officer Gyanendra Kumar Gangwar and Basavaraj Kannale, an alleged middleman and key accused in the case.
The ED arrested the duo from Bengaluru Central Prison at Parappana Agrahara on Friday evening under the Prevention of Money Laundering Act (PMLA).
ED Arrests Suspended IAS Officer and Alleged Middleman
ED officials had reportedly been questioning Gangwar and Kannale inside the prison for the past four days as part of their investigation into the suspected financial transactions linked to the alleged recruitment scam.
According to the information available, the two allegedly refused to cooperate with the investigation. The ED subsequently arrested them and produced them before the jurisdictional court.
Following the court proceedings, the accused were taken to the ED’s Bengaluru Zonal Office in Jalahalli, where their interrogation is continuing.
Gangwar and Kannale had earlier been arrested by the CID during its investigation. After the CID probe was completed, they were remanded to judicial custody on September 9.
The latest arrests by the ED have been made under the provisions of the PMLA, as the agency investigates the suspected movement and use of money generated through the alleged crime.
Alleged KPSC Recruitment Scam Involves OMR Manipulation and Paper Leak
The alleged scam came to light after some candidates raised concerns over possible manipulation of OMR answer sheets and a question paper leak in the veterinary officer recruitment examination conducted by the KPSC.
Investigators are also looking into allegations that selected candidates were taken to a resort and trained using questions that had allegedly been leaked before the examination.
The allegations point to an organised arrangement in which candidates were allegedly offered selection in return for large sums of money.
According to the information provided:
- Candidates allegedly paid between ₹30 lakh and ₹80 lakh per post if selected.
- The suspected proceeds of the alleged scam are estimated to run into crores of rupees.
- The investigation is examining alleged manipulation of examination processes and the flow of money connected with the recruitment.
ED Traces Suspected Illegal Financial Transactions
The ED is now focusing on the financial aspects of the alleged recruitment scam, including the source and movement of money.
During the investigation, officials reportedly examined bank account details and traced the sources of crores of rupees suspected to be connected with the alleged illegal transactions.
The agency also reportedly seized and examined several pieces of evidence, including:
- CCTV footage from a resort in Devanahalli where candidates were allegedly coached.
- Buses allegedly used to transport candidates.
- A car belonging to Basavaraj Kannale.
- Bank account details and financial transaction records.
These materials are being examined as part of the ED’s money-laundering investigation.
ED Examines Alleged Resort Training Network
A key part of the investigation concerns the alleged training of candidates at a resort in Devanahalli.
According to the allegations, candidates were taken to the resort and provided training using questions that had allegedly been leaked from the examination.
The ED has reportedly collected CCTV footage from the premises and is examining other evidence related to the movement of candidates and the alleged arrangements made for their training.
The agency is also investigating the financial transactions associated with the alleged recruitment operation.
Agency May Attach Alleged Benami Properties
The ED is preparing to take further action against properties allegedly acquired using the proceeds of the alleged crime.
According to the information provided, the agency is examining benami properties allegedly procured by Kannale and other accused persons using suspected proceeds of the alleged recruitment scam.
The proposed action forms part of the ED’s wider investigation into the alleged money trail and assets linked to the case.
Former KPSC Officials Under ED Scanner
The investigation is also expanding beyond the two arrested individuals.
ED officials are reportedly collecting information about the possible involvement of former KPSC chairpersons, members and officials in the alleged scam.
The agency is examining whether individuals associated with the commission had any role in the alleged examination irregularities or the financial transactions connected with the case.
The investigation remains ongoing, and further action will depend on the evidence and financial links identified by the agency.
Read also: KPSC Candidate’s Testimony Leads CID to Suspended IAS Officer Gangwar in Recruitment Scam
