BENGALURU: The preliminary investigation by the Karnataka Lokayukta police into the case involving certain IPS officers has made a startling revelation that the dismissed head constable G Ningappa had allegedly invested crores of rupees in 438 bitcoins.
Ningappa was arrested by the Lokayukta police for allegedly extorting government officials by blackmailing about possible raids against them after obtaining information from his ‘sources’ within Karnataka Lokayukta.
After tracing the total investment in 438 bitcoins in various cryptocurrency exchanges, as of now, and conducting the mahazar, the Lokayukta police have created a ‘Police Wallet’ in a cryptocurrency exchange and have started the process of transferring 438 bitcoins, of which 78 bitcoins have been transferred successfully. The value of the same is being ascertained.
The investments are made by Ningappa in his name, his wife’s name (Chandrakala) and others, including a certain IPS officers.
The Lokayukta police gathered the investment details by writing to over 25 cryptocurrency exchange firms.
This was ascertained after the cybercrime wing of the CID facilitated the data. The cyber crime wing analysed the data found in Ningappa’s mobile phone and also did mirror imaging following a request by the Lokayukta police.
Sources in Lokayukta said the investment in bitcoins came to light after analysing the data found in two mobile phones of Ningappa.
‘Ningappa not cooperating with investigation’
“Ningappa did not disclose about the second phone and is not cooperating with the probe. However, the Lokayukta police have retrieved the data of the same using technical tools,” a source said.
The police have also issued notice to four persons—Syed Zari, Giriraj, Sanjay and Mallikarjun— who were residing in Hassan, Chikkaballapura and in Bengaluru — and recorded their statements, as these persons allegedly facilitated US dollars to Ningappa to transfer them into his crypto wallets, in exchange of cash he collected from the officials.
The details of further investments made by Ningappa and the officials who have nexus with him, both within and outside Lokayukta, will come to light if the ongoing investigation by Lokayukta police is strictly in consonance with the law, and if there is no attempt to protect anyone, sources said.
Considering the veracity of the case and the apprehension of the Lokayukta police that Ningappa may indulge in similar crimes, destroy the evidence and hamper the ongoing investigation if he is released, K M Radhakrishna, Judge, the Special Court for Lokayukta Cases, remanded Ningappa in judicial custody till June 30.
Meanwhile, the Lokayukta police have found that Ningappa was in constant touch with police officials within the Lokayukta, in addition to the various officials of the State Government.
Apart from recording the statements of the officials of the excise department, and Regional Transport Offices, from whom Ningappa collected huge money, the Lokayukta police have started issuing notices to the others.
In a search conducted on the residence of Srinath M Joshi, who was serving as Lokayukta SP, (Bengaluru City-1), at a posh apartment in Tavarekere on June 15, after his alleged nexus with Ningappa was established, the police found a total of 198 gms gold ornaments, including a gold biscuit weighing 10 gms, a diary, and cash of Rs 32,000, etc. After mahazar, the ornaments and cash were handed over to a family member of Joshi, who was present in the house. The IPS officer, who was relieved from Lokayukta agency recently, has been summoned for inquiry.
Ningappa, who was dismissed from service for misconduct a few years ago, was working under Joshi and two other IPS officers, who were top-ranking officials working now in Bengaluru, when they were working as Chitradurga SPs.