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The ED findings emerged during the investigation into Gyanendra Kumar Gangwar, 41, an IAS officer and former controller of KPSC examinations. (Express file photo)
The Enforcement Directorate (ED), probing into the money laundering aspect of the alleged irregularities in the recruitment of veterinary doctors by the Karnataka Public Service Commission (KPSC) this year, has placed IAS officer Gyanendra Kumar Gangwar, who was the KPSC exam controller, and a key middleman, Basavaraj Kannale, under arrest after four days of questioning.
Gangwar and Kannale are lodged in Bengaluru central prison after they were arrested by the CID. Gangwar was arrested on August 29, and a day later Kannale was nabbed at New Delhi airport before he could flee to Uzbekistan via Almaty in Kazakhstan.
The ED will seek their formal custody on Monday in a special court, ED sources said.
The IAS officer was arrested on September 18 night in prison and the middleman a day earlier, sources said.
According to the CID investigation, 11 of 329 aspirants had allegedly paid between Rs 35 lakh to Rs 80 lakh to Kannale to be recruited through the KPSC for the 400 vacancies for veterinary doctors posts in the state government. Around Rs 52 lakh funds collected from aspirants by the middleman were funneled for purchasing gold and diamond jewellery by Gangwar, a 2016-batch IAS officer, at a prominent jewellery showroom, according to the CID probe.
Last month, the ED conducted searches under the PMLA in 21 premises in Bengaluru, Hassan, Chitradurga, Davanagere, Raichur, Karwar, Kalaburagi, and Belagavi, as well as in Ahmedabad.
The CID probe has found that Gangwar allegedly leaked the exam questions to the middleman. Kannale brought the KPSC candidates who paid him to Orchid Resort in Devanahalli in hired cabs the night before the exam, coached them, and took them to the test centres the next day, the probe found. Papers allegedly leaked by the KPSC exam controller were shared in both handwritten and printed form through encrypted channels, investigators said. The exams were held on January 8 and 9 this year.
The opposition BJP in Karnataka has accused the ruling Congress of shielding the IAS officer from the ED probe.
Suspended KPSC chairman Shivashankarappa S Sahukar — already facing a separate case over his daughter’s alleged illegal recruitment — is also being investigated over suspected links to Kannale. The CID has not arrested him citing his cooperation with the probe.
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