BENGALURU: The Enforcement Directorate (ED) said its money-laundering investigation into the Karnataka Public Service Commission (KPSC) Veterinary Officers’ Recruitment Examination has uncovered an alleged corruption network involving the leakage of confidential question papers, the collection of bribes from candidates, and the movement of suspected proceeds of crime through different financial channels.
The ED has arrested former KPSC Controller of Examinations and IAS officer Gyanendra Kumar Gangwar and alleged key facilitator Basavaraj Kannale in connection with the case. According to the agency’s latest information, it arrested Kannale on September 17 and Gangwar on September 18. The Special PMLA Court in Bengaluru subsequently remanded both to ED custody for 14 days.
ED, Bengaluru has arrested Basavaraj Kannale on 17/09/2026 and Gyanendra Kumar Gangwar, IAS, the then Controller of Examination of KPSC on 18/09/2026 for their role in leakage of question paper of Veterinary Officers’ Recruitment Exam in lieu of illegal gratification from… pic.twitter.com/aSOX0hUgFe
— ED (@dir_ed) September 30, 2026
The case relates to KPSC’s recruitment for 400 Veterinary Officer posts. The ED investigation follows police FIRs registered in Bengaluru over alleged irregularities in the recruitment process. The agency has alleged that the examination process was compromised through the leakage of confidential examination material and subsequent attempts to secure candidates’ selection in return for large sums of money.
According to the ED’s findings, Gangwar, who was responsible for the custody and supervision of confidential examination papers while serving as Controller of Examinations, allegedly facilitated the leakage of the question paper. The agency has alleged that the paper, along with the correct answers, reached Kannale shortly before the examination.
Kannale allegedly acted as an intermediary between the leaked examination material and candidates seeking appointment. Investigators have alleged that candidates were approached with assurances of selection in exchange for payments. The amounts allegedly demanded ranged from Rs 30 lakh to Rs 80 lakh per candidate, with the final amount reportedly varying according to individual negotiations. The ED’s official statement specifically refers to illegal gratification ranging from Rs 30 lakh to Rs 40 lakh per candidate.
The investigation has also brought out allegations that candidates who agreed to pay were taken to a resort outside Bengaluru. According to the agency’s case, the leaked question paper and answers were provided to them, allowing them to prepare before the exam. Candidates were allegedly transported from the resort to their respective examination centres on the day of the test.
The alleged financial arrangements were not limited to direct cash payments. Investigators are examining banking transactions, cash movements and other financial records to establish how the suspected proceeds were collected and transferred. The ED has also been examining the use of signed cheques and other financial instruments allegedly obtained from candidates as security for payments.
Search operations conducted by the agency between August 18 and August 24 reportedly yielded documents and other evidence relevant to the investigation. The financial probe aims to identify the movement and utilisation of money allegedly generated through the recruitment racket.
The ED has alleged that the suspected proceeds were routed through different channels and used for transactions including purchases and other expenditures. The agency is continuing its efforts to trace the complete money trail and identify assets allegedly acquired from the proceeds.
The investigation has also scrutinised the role of officials and intermediaries associated with the recruitment process. The ED is examining whether other officials, candidates or facilitators were involved in the alleged arrangement and whether similar methods were used in other recruitment examinations.
Gangwar’s alleged role in the paper leak has emerged as central to the probe. Reports on the investigation have said the former Controller of Examinations allegedly admitted to providing the paper to Kannale, although the allegations remain subject to investigation and judicial proceedings.
