KPSC veterinary officers exam scam: ED traces proceeds to bank transfers, gold purchases and cash transactions

Udyoga Soudha, the head office of the Karnataka Public Service Commission (KPSC), head office near Vidhana Soudha, in Bengaluru. | Photo Credit: MURALI KUMAR K The Enforcement Directorate (ED), probing the alleged question paper leak in the Karnataka Public Service Commission’s (KPSC) Veterinary Officers’ Recruitment Examination, has traced the proceeds of the alleged recruitment scam to bank transfers, gold purchases and cash transactions after it arrested former KPSC Controller of Examinations, IAS officer Gyanendra Kumar Gangwar.The ED said its investigation revealed that candidates were allegedly made to pay between ₹30 lakh and ₹40 lakh each, after an initial demand of around ₹80 lakh, for access to the leaked question paper and correct answers. The agency alleged that portions of the money were collected through cash and banking channels and that candidates were also made to provide signed blank cheques and promissory notes to secure the remaining payments.The agency said searches conducted between August 18 and 24, 2026, yielded material showing that the proceeds generated from the alleged criminal activity were subsequently layered and utilised through various modes, including bank transfers, purchase of gold jewellery and cash payments for air travel and other transactions. The transactions were allegedly carried out to conceal the source of the money and project the proceeds as untainted property.Gangwar was arrested by the ED on September 18 under the Prevention of Money Laundering Act (PMLA). The agency alleged that he misused his position as KPSC Controller of Examinations and facilitated the leakage of the Veterinary Officers’ Recruitment Examination question paper to Basavaraj Kannale, one day before the scheduled examination, in return for illegal gratification.Gangwar was produced before the Special Court for PMLA cases in Bengaluru on September 21, which granted him 14 days’ custody with the ED for further investigation.The examination was conducted for recruitment to 400 Veterinary Officer posts. The ED began its probe based on multiple FIRs registered at Vidhana Soudha police station under Sections 318(3), 318(4), 336(2), 336(3) and 340(2) of the Bharatiya Nyaya Sanhita, 2023.Kannale’s role in the scamAccording to the ED, Basavaraj Kannale, allegedly acting in connivance with his associates, facilitated the illegal selection of candidates by providing them with the leaked question paper containing the correct answers. The agency alleged that Kannale obtained access to the confidential examination material through his association with Gangwar, who was entrusted with its custody and supervision.The ED alleged that Kannale approached several candidates and assured them of selection. An amount of around ₹80 lakh was initially demanded from each candidate, which was subsequently negotiated to between ₹30 lakh and ₹40 lakh.Investigators also found that selected candidates were allegedly taken to a resort on the outskirts of Bengaluru, where they were provided the leaked question paper and made to memorise the answers under the supervision of Kannale and his associates.On the day of the examination, the candidates were allegedly transported to their respective examination centres in vehicles arranged by Kannale and his associates.The ED had arrested Basavaraj Kannale on September 17. He was produced before the Special Court on September 29, which granted him 14 days’ custody with the ED. Published - September 30, 2026 06:18 pm IST