ED Freezes ₹1.22 Crore in KPSC Recruitment Scam Involving Former Chairman and IAS Officers

Bengaluru, November 14 (Daily Kiran) : The Enforcement Directorate (ED) has taken significant action in the Karnataka Public Service Commission (KPSC) recruitment scam, freezing assets worth ₹1.22 crore. This move comes as part of an ongoing investigation into money laundering linked to the case.

On November 13, the ED’s Bengaluru zonal office issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA). Among those whose assets have been frozen are former KPSC Chairman Shivshankarappa Sahukar, commission member Geeta B.V. Shivamurthy, and former examination controller Gyanendra Kumar Gangwar.

The investigation was initiated based on multiple FIRs filed at the Vidhana Soudha police station in Bengaluru. It centers on irregularities in the recruitment examination for veterinary officers in the Animal Husbandry and Fisheries Department, including the use of fake certificates. Evidence has revealed that the former chairman, members, and examination controller misused their positions in collaboration with others, including Basavaraj Kannale.

Allegations suggest that Gyanendra Gangwar leaked the exam paper with correct answers to his associate, Basavaraj Kannale, on January 7 of this year. The following day, Kannale distributed the paper to ten candidates at a villa on the outskirts of Bengaluru, demanding bribes ranging from ₹20 to ₹40 lakh. Candidates were asked to provide cash upfront and submit blank checks as collateral. The OMR sheets of these candidates matched the KPSC’s initial answer key, which was later found to contain numerous errors in the revised version.

Further investigations revealed that under Shivshankarappa’s direction, Gangwar prepared 80 correct answers for six candidates, handing them over to Geeta Shivamurthy. In return, the chairman promised to secure high marks for his preferred candidates in the KAS interview. A notebook containing roll numbers written in Shivshankarappa’s handwriting was also discovered at his residence.

Shivshankarappa is accused of accepting ₹10 lakh in cash from a candidate as part of a ₹20 lakh deal, while Geeta Shivamurthy allegedly collected ₹20 lakh in cash from another candidate in a ₹40 lakh arrangement.

The bribe money was funneled into accounts associated with the Om Lakshmi Souhard Cooperative Society in Bhalki (Bidar) and other entities, disguised as deposits in fake savings accounts. This money was reportedly used to purchase jewelry worth ₹52.30 lakh in the name of a third party for Gangwar, along with covering ₹13.31 lakh in air travel expenses for Gangwar and his family, paid for by Kannale.

The ED has already conducted raids at the KPSC office and other locations. So far, Basavaraj Kannale was arrested on September 17, Gyanendra Gangwar on September 18, and both Shivshankarappa and Geeta were taken into custody on October 6.