BENGALURU: A former police head constable allegedly converted into cryptocurrency several crores of rupees he reportedly collected by blackmailing government officials and leaking advance information on possible raids by Lokayukta police. He also secured tip-offs on impending raids from his ‘sources’ within the Lokayukta office.
The ongoing interrogation of G Ningappa, also known as Ningappa Sawanth (46), from Chitradurga — arrested by the Lokayukta police under the Prevention of Corruption Act on 2 June — has revealed that the money he allegedly extorted from government officials was invested in cryptocurrency wallets registered under multiple names, including those of certain IPS officers serving in the Lokayukta.
Lokayukta police have written to nearly 25 companies to ascertain the total amount Ningappa invested through centralised and decentralised cryptocurrency transactions. Ningappa, who had been posted in Chitradurga, was dismissed from service for misconduct a few years ago.
According to sources, Ningappa’s mobile phone was sent to the CID cyber wing for mirror imaging and examination of cryptocurrency transactions. The initial probe revealed that he invested Rs 4.19 crore in eight cryptocurrency exchange platforms, including Binance and Bitget. The investments were made in his name, his wife Chandrakala’s name, and the names of some officers. The Lokayukta police also seized approximately 90 grams of gold ornaments from his residence in Chitradurga, along with several incriminating documents.
Modus operandi: Using fake IPS contacts and caller IDs
Ningappa’s modus operandi involved saving phone numbers in his contacts under the names of IPS officers and even the Lokayukta himself. He would then send screenshots to officials whose names had been leaked to him by his ‘sources’ within the Lokayukta, to create the impression that he was closely associated with top officials. His messages included alerts like, “Today morning 7 districts Lokayukta raid. Be alert.”
According to excise officials who appeared before the Lokayukta police for questioning, Ningappa had also purchased SIM cards and saved them under the names of specific IPS officers from the anti-corruption watchdog and Lokayukta. These names would appear in caller ID apps when he contacted officials, adding to the illusion of authenticity.
He targeted officials in the Excise Department, Regional Transport Offices, and the Bruhat Bengaluru Mahanagara Palike (BBMP), and allegedly collected amounts ranging from Rs 20,000 to Rs 25 lakh. Investigations have revealed that he collected approximately Rs 58 lakh from excise officials alone.
Frequent visits to Lokayukta HQ raised suspicions
Ningappa’s impersonation as a ‘Sub-Inspector of Lokayukta’ came to light after informants tipped off Lokayukta police about government officials receiving dubious calls from someone claiming to have links with senior officers. It was also discovered that Ningappa regularly visited the Lokayukta headquarters in Bengaluru, meeting certain IPS officers. These officers reportedly provided him with confidential information about pending reports and upcoming raids targeting officials suspected of possessing disproportionate assets.
After receiving this information, Ningappa would contact the targeted officials and demand money to help them evade the raids. In some cases, he received the bribes through UPI transfers. He then either handed the cash over to intermediaries or transferred it digitally to their bank accounts, which was subsequently converted to dollars and transferred into his cryptocurrency wallets.
Lokayukta office under scrutiny
These revelations have caused concern at the Lokayukta office, which is still in the process of rebuilding its reputation after a major corruption scandal a few years ago involving former Lokayukta Justice Y Bhaskar Rao, his son, and others.
Justice B S Patil, the current Lokayukta, held a meeting with Bengaluru Lokayukta police officials on Friday and conveyed a strong message that he would not tolerate any officer who fails in their duties. Justice Patil confirmed Ningappa’s arrest and interrogation and stated that the case is one among 40 registered recently following reports that individuals were collecting money in the name of the Lokayukta, Upa Lokayuktas, and other police officers. However, he declined to share further details of the ongoing investigation.
Justice Patil also stated that he has written to the government requesting the creation of a dedicated ‘Vigilance Wing’ within the Lokayukta, with a sitting district judge to maintain continuous oversight of police activities.