AI-assisted collage of two screenshots supplied for the KPSC recruitment investigation report.
Bengaluru: An alleged question-paper leak in Karnataka’s veterinary officers’ recruitment examination involved negotiated payments of ₹30–40 lakh per candidate, signed blank cheques to secure unpaid amounts and a resort session to memorise answers, according to the Enforcement Directorate (ED).
The agency’s Bengaluru Zonal Office has outlined an alleged chain linking access to confidential KPSC examination material with candidate recruitment, advance payments and transport to examination centres. The investigation concerns an examination conducted by the Karnataka Public Service Commission for 400 posts.
ED said it formally arrested Basavaraj Kannale on September 17 and IAS officer Gyanendra Kumar Gangwar, the then Controller of Examinations at KPSC, on September 18. Both were already in judicial custody when the agency arrested them. A Special PMLA Court subsequently granted ED 14 days’ custody of each accused on separate dates.
From an ₹80-lakh demand to negotiated payments
According to ED, the initial demand was approximately ₹80 lakh from each candidate. The amount was subsequently negotiated down to between ₹30 lakh and ₹40 lakh per candidate.
Investigators alleged that part of the agreed sum was collected in advance through cash and banking channels. To secure the balance, some candidates were allegedly required to provide signed blank cheques and promissory notes. ED said some of these documents were recovered and seized during searches.
The agency also alleged that the bank account of M/s Om Lakshmi Souharda Sahakari Sangha Niyamitha, Bidar, was used to receive certain amounts connected with the alleged illegal payments. The release did not specify the total sum collected or the number of candidates involved.
Answers allegedly memorised at a Bengaluru-area resort
ED alleged that Kannale and his associates identified and approached candidates, assured them of selection and supplied a leaked question paper containing correct answers in return for payment.
According to the agency, selected candidates were taken to a resort on Bengaluru’s outskirts and made to memorise the answers under the supervision of Kannale and his associates. On the following day, the day of the examination, they were allegedly transported to their respective centres in vehicles arranged by Kannale or his associates.
The release did not identify the resort or provide the examination date.
Role of the official entrusted with confidential papers
ED alleged that Kannale obtained access to the leaked paper through his close association with Gangwar, who was responsible for the custody and supervision of confidential examination material.
As Controller of Examinations, Gangwar’s responsibilities included finalising and supervising the printing of question papers and maintaining custody of confidential material, the agency said. It alleged that he misused his position to facilitate the transfer of the veterinary recruitment question paper, containing correct answers, to Kannale one day before the examination in exchange for illegal gratification.
Separate arrest and custody dates
ED said Kannale was arrested under Section 19 of the Prevention of Money Laundering Act, 2002, over his alleged involvement in generating, collecting and handling proceeds of crime. He was produced before the Special Court for PMLA cases, CCH-4, on September 29, when the court granted the agency 14 days’ custody.
Gangwar, formally arrested on September 18, was produced before the same court on September 21 on a production warrant. The court granted ED 14 days’ custody for further investigation, the agency said. These are the dates reported in ED’s September 30 statement.
Bank transfers, jewellery and travel payments under scrutiny
The money-laundering investigation is based on multiple FIRs registered at Vidhana Soudha Police Station in Bengaluru concerning alleged recruitment irregularities.
ED said analysis of material seized during searches conducted between August 18 and August 24 indicated that alleged proceeds of crime were subsequently moved and used through bank transfers, gold jewellery purchases, cash payments for air travel and other cash transactions. It alleged these transactions were intended to conceal the origin of the money and project it as untainted property.
Further investigation is continuing. The allegations in the release are ED’s findings at the investigation stage; it does not report a conviction or include responses from Kannale or Gangwar.
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