BENGALURU: The Enforcement Directorate (ED) has intensified its investigation into suspected illegal monetary transactions linked to an alleged scam in the veterinary officer recruitment examination conducted by the Karnataka Public Service Commission (KPSC).
Following a probe by the Criminal Investigation Department (CID), ED officials reportedly arrested suspended IAS officer Gyanendra Kumar Gangwar and Basavaraj Kannale, the middleman, who were allegedly involved in the scam.
They were arrested from the Bengaluru Central Prison at Parappana Agrahara on Friday evening.
ED officials were already questioning the two in the prison for the last four days. As they refused to cooperate with the investigation, ED arrested the duo and produced them before the jurisdictional court. Now, they have been taken to ED’s Bengaluru Zonal Office in Jalahalli and their interrogation continues.
Gangwar, who served as KPSC Examination Controller when the alleged scam took place, and Kannale, an alleged middleman and key accused in the case, were first arrested by CID. After the CID investigation was completed, they were remanded to judicial custody on September 9.
ED’s arrest on Friday is under the Prevention of Money Laundering Act (PMLA).
The alleged scam surfaced after some candidates pointed to OMR sheet manipulation, question paper leak and training the selected candidates at a resort with the leaked questions.
The scamsters allegedly struck a deal with the candidates, who paid amounts ranging from Rs 30 lakh to Rs 80 lakh per post if selected. The proceeds of alleged scam runs into crores of rupees.
During the investigation, ED reportedly seized CCTV footage from a resort in Devanahalli where the candidates were coached, buses allegedly used to transport the candidates and a car belonging to Kannale. Officials also examined bank account details and traced the sources of crores of rupees suspected to be linked to the alleged illegal transactions.
ED is now getting ready to attach benami properties allegedly procured by Kannale and other accused using the proceeds of the alleged crime.
ED officials are also collecting information about the possible involvement of former KPSC chairpersons, members and officials in the scam.