Indian investigators trace alleged KPSC exam-scam money through banks, gold and cash
India’s Enforcement Directorate says money from an alleged Karnataka Public Service Commission recruitment scam was moved through bank transfers, gold purchases and cash payments. The agency alleges candidates paid up to ₹40 lakh for leaked examination material. Two people, including a former KPSC examinations controller, have been arrested.
India’s Enforcement Directorate says it has traced proceeds from an alleged question-paper leak in the Karnataka Public Service Commission’s Veterinary Officers’ Recruitment Examination through bank transfers, gold purchases and cash transactions. The agency said its investigation found that candidates were allegedly charged between ₹30 lakh and ₹40 lakh each for access to the leaked paper and correct answers. An initial demand of about ₹80 lakh was reportedly negotiated down, while some candidates were allegedly required to provide signed blank cheques and promissory notes for outstanding payments.
Searches conducted between August 18 and 24 produced material that showed the alleged proceeds being transferred through banks, used to buy gold jewellery and spent on air travel and other cash transactions, according to the ED. The agency said the arrangements were intended to conceal the money’s source and make it appear legitimate. Former KPSC Controller of Examinations Gyanendra Kumar Gangwar was arrested on September 18 under India’s Prevention of Money Laundering Act.
The ED alleges that he used his position to facilitate the leak of the examination paper to Basavaraj Kannale one day before the scheduled test in exchange for illegal gratification. Gangwar was produced before a special court in Bengaluru on September 21, which granted the agency 14 days’ custody for further investigation. Kannale had been arrested on September 17 and was granted a further 14 days in ED custody when he appeared before the court on September 29.
The agency alleges that Kannale, working with associates, approached candidates and promised to secure their selection. Investigators say selected candidates were taken to a resort outside Bengaluru, given the leaked paper and instructed to memorise the answers before being transported to examination centres. The examination was for 400 veterinary officer posts.
The ED began its probe after multiple police cases were registered at Vidhana Soudha police station under provisions of India’s Bharatiya Nyaya Sanhita.
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