ED arrests suspended IAS officer, alleged middleman in KPSC recruitment case

The Enforcement Directorate has arrested suspended IAS officer Gyanendra Kumar Gangwar and alleged middleman Basavaraj Kannale in the KPSC recruitment case. The agency is investigating alleged money laundering linked to the recruitment of veterinary doctors this year.

The agency acted after questioning both men in Bengaluru Central Prison. Gangwar was the Karnataka Public Service Commission's examination controller. The CID had earlier arrested both men. They were remanded to judicial custody on September 9 after the CID completed its investigation.

The ED would seek their formal custody before a special court on Monday. It said the agency searched 21 premises across Karnataka and Ahmedabad last month under the Prevention of Money Laundering Act.

The CID alleged that 11 of 329 aspirants paid Kannale between Rs 35 lakh and Rs 80 lakh. The payments were allegedly made for selection against 400 veterinary doctor vacancies.

The CID also alleged that Gangwar leaked examination questions to Kannale. Kannale allegedly coached paying candidates at a Devanahalli resort before taking them to examination centres.

The examinations were held on January 8 and 9. Investigators alleged that handwritten and printed questions were shared through encrypted channels.

Investigators examined bank accounts and seized resort footage and vehicles allegedly used to transport candidates. The agency is also tracing suspected proceeds and examining possible benami properties, the report said.