BENGALURU: The Directorate of Enforcement (ED), Bengaluru zonal office, has provisionally attached movable and immovable assets worth Rs 1.22 crore in the Karnataka Public Service Commission (KPSC) recruitment scam case under the Prevention of Money Laundering Act (PMLA), 2002.
“The Provisional Attachment Order (PAO) -- 43/2026 dated November 13 -- has been issued under Section 5(1) of the PMLA for immovable and movable properties of former KPSC authorities -- chairman Shivashankarappa Sahukar, member Geetha BV Shivamurthy, and IAS officer and former Controller of Examinations (CoE) Gyanendra Kumar Gangwar,” the ED stated in an official release on Saturday.
The ED investigation was initiated on the basis of multiple FIRs registered by Vidhana Soudha police station, for offences under Sections 318(3), 318(4), 336(2), 336(3) and 340(2) of the Bharatiya Nyaya Sanhita (BNS), 2023, relating to irregularities in the recruitment exam for veterinary officer posts in the Department of Animal Husbandry & Fisheries, and also submission of false certificates in KPSC recruitments.
“Investigation has revealed that the then chairman, a member and then CoE, KPSC, in conspiracy with Basavaraj Kannale and others, abused their official positions and induced candidates to pay illegal gratification in exchange of assured selection, through leaked question papers with the correct answers marked, leaked candidate-specific correct answer keys, and misuse of confidential marks at the stage of the 1:3 eligibility list,” added the central law enforcement agency.
Further investigation has revealed that Gangwar leaked the question papers with the correct answers to his close associate, Kannale, on January 7, 2026. The former circulated them among 10 candidates at a villa on the outskirts of Bengaluru a day before the examination, on January 8, and demanded illegal gratification between Rs 20 lakh and Rs 40 lakh.
Out of this a part amount was received as advance, while the remaining amount was secured through blank signed cheques and promissory notes from the candidates,” claimed the ED.
Explaining the modus operandi of the alleged illegalities in the KPSC recruitment scam, the ED stated that “OMR answer sheets of these candidates matched the initial answer key published by KPSC, including answers later found to be incorrect in the revised answer key.
Furthermore, at the instance of Sahukar, Gangwar, by using seating arrangements and jumbled charts (he was the custodian), prepared the correct answers to 80 questions for six candidates, whose registration numbers were provided by Geetha, and handed them over to her on January 8. In return, the then chairman assured him of favourable interview marks in the KAS examination for a candidate of his choice.
A notebook containing the centre-wise registration numbers of candidates, in Sahukar’s handwriting, was seized from his residence. Sahukar collected Rs 10 lakh in cash from one candidate against a deal of Rs 20 lakh, and Geetha collected Rs 20 lakh in cash from another candidate against a deal of Rs 40 lakh.
The illegal gratification was collected in cash and also through the bank accounts of Om Lakshmi Souharda Sahakari Sangha Niyamita, Bhalki (Bidar) and other third parties, and were disguised through entries in bogus savings accounts.
Out of the proceeds of crime, gold and diamond jewellery worth Rs 52.30 lakh was purchased in the name of a third person for the benefit of Gangwar. The air travel expenses of Gangwar, his family members and friends, amounting to Rs 13.31 lakh were also met by Kannale through third-party accounts,” the ED explained.