The Enforcement Directorate (ED) has arrested an IAS Officer and a key middleman in connection with alleged irregularities in the recruitment of veterinary doctors by the Karnataka Public Service Commission. The agency is probing the money-laundering aspects of the case. Will seek formal custody of the two men from a special court on Monday.
Gyanendra Kumar Gangwar, a 2016-batch IAS Officer who served as the KPSC’s controller of examinations until March this year and Basavaraj Kannale identified by investigators as the intermediary were placed under arrest by the ED after four days of questioning. Both men were already lodged in Bengaluru Central Prison following their arrests by the state Criminal Investigation Department. Gangwar was arrested by the CID on 29 August. Kannale was detained the day at Delhi airport while allegedly attempting to leave the country for Uzbekistan via Kazakhstan.
The case centres on the KPSC’s recruitment process for 400 doctor posts. The written entrance examinations were conducted on 8 and 9 January 2026. According to the CID investigation a group of aspirants were allegedly approached by Kannale with an offer to obtain the question paper in advance. Candidates who agreed reportedly paid amounts ranging from ₹35 lakh to ₹80 lakh. Investigators have far traced bank transfers of around ₹70 lakh from 11 candidates to accounts linked to the middleman.
The CID probe has alleged that those who paid were taken in hired vehicles to the Orchid Resort in Devanahalli on the outskirts of Bengaluru the night before the exam. There they were allegedly provided with the leaked questions in both printed forms and given guidance on how to answer them. The morning they were transported to the examination centres. Honest candidates who had prepared through study walked into the same halls without any such advantage.
Gangwar is accused of leaking the question paper to Kannale. As the controller of examinations he was responsible for the process of finalising and printing the papers. The CID has also examined communication records and financial transactions between the two men. Part of the money collected from candidates was allegedly used to purchase gold and diamond jewellery worth about ₹52 lakh at a showroom. Investigators say the jewellery was linked to a person associated with Gangwar. Additional expenses, including air tickets are also under scrutiny.
The ED entered the picture to investigate money laundering under the Prevention of Money Laundering Act. The agency has already conducted searches at 21 premises across Bengaluru, Hassan, Chitradurga, Davanagere, Raichur, Karwar, Kalaburagi, Belagavi and Ahmedabad. After questioning Gangwar and Kannale in prison for days the ED decided to formally arrest them. Officials will now approach the court on Monday to seek their custody for further interrogation into the financial trail.
The allegations have caused disappointment among many genuine aspirants and their families. Government veterinary posts are highly sought after because they offer income and the opportunity to work in rural and semi-urban areas where animal health services are often limited. Thousands of people across Karnataka prepare for such examinations for years. Parents frequently support their children’s studies by taking loans or cutting household expenses. When results showed some candidates scoring high marks questions began to surface. Complaints were filed an FIR was registered and the investigation gradually expanded.
Kannale’s arrest at the airport added another layer to the case. Investigators believe he was trying to leave the country after the CID began closing in. His earlier connection with Gangwar, which reportedly began years ago when the IAS Officer was posted in Bidar is also being examined. The CID has presented details of bank transfers, jewellery purchases and travel expenses before the court while opposing bail applications.
The wider background includes concerns about the integrity of the recruitment process itself. Some candidates who were not selected have alleged that Optical Mark Recognition answer sheets may have been manipulated and that a small number of people gained an edge through the leaked paper. Forensic examination of hundreds of OMR sheets is under way. Parallel investigations are also looking at links involving other KPSC officials though those aspects remain under inquiry.
For the people who studied sincerely and appeared for the exam without any external help the developments have been disheartening. Many had invested time and money in coaching and preparation. The promise of a competitive examination is what keeps such systems credible. When that promise is questioned it affects not the candidates of one particular recruitment but also public confidence in the process as a whole.
The ED’s focus remains on tracing the flow of money and establishing how the alleged proceeds were used or layered. Jewellery purchases transfers through cooperative society accounts and other expenses form part of this mapping. Officials expect that further questioning of Gangwar and Kannale in ED custody will help clarify these links.
On Monday the special court will hear the ED’s request for custody. Until then both men continue to remain in prison. The investigation is still active and more details are expected to emerge as agencies dig deeper into the communication records bank statements and other evidence collected far.
The case has drawn attention because it involves an Officer who was entrusted with one of the most sensitive responsibilities in the examination system. For ordinary families who pin their hopes on government recruitment exams the allegations serve as a reminder of how easily that trust can be shaken. The outcome of the probes will determine the next steps, both legally and in terms of restoring confidence, in the process.
Publisher By – Rohit Manral
Written By – Anjali Pandey