Candidates allegedly paid tens of lakhs of rupees for favourable selection in the Karnataka Public Service Commission’s Veterinary Officers recruitment examination and were then made to sign over blank cheques and promissory notes to secure the unpaid balance, according to the Enforcement Directorate.
Published on: Oct 1, 2026, 08:01:30 IST By HT Correspondent, BENGALURU Prefer HTon Google Share via Copy link Candidates allegedly paid tens of lakhs of rupees for favourable selection in the Karnataka Public Service Commission’s Veterinary Officers recruitment examination and were then made to sign over blank cheques and promissory notes to secure the unpaid balance, according to the Enforcement Directorate.
India News The agency, in an account of its investigation released on Wednesday, said the amount initially demanded from candidates was around ₹80 lakh but was later negotiated to between ₹30 lakh and ₹40 lakh each.
Part of the money was collected in advance through cash and bank transfers, while blank signed cheques and promissory notes were obtained from some candidates for the remaining amounts.
The ED said some of those documents were recovered during searches and seized as part of its investigation.
The agency is investigating alleged manipulation of the KPSC examination for 400 Veterinary Officers posts.
Multiple FIRs were registered at Vidhana Soudha police station in Bengaluru under provisions of the Bharatiya Nyaya Sanhita relating to cheating, forgery and use of forged documents.
The investigation has centred on Basavaraj Kannale and Gyanendra Kumar Gangwar, who was the KPSC Controller of Examinations when the alleged paper leak took place.
According to the ED, Kannale and his associates allegedly arranged for candidates to receive a leaked question paper containing the correct answers in return for illegal gratification.
The agency said Kannale obtained access to the paper through Gangwar, who was responsible for the custody and supervision of confidential examination material.
The ED arrested Kannale on September 17 under the Prevention of Money Laundering Act.
He was subsequently produced before the special PMLA court, which granted the agency 14 days’ custody.
Gangwar was arrested a day later, on September 18.
The ED alleged that he had used his official position to facilitate the leakage of the examination paper to Kannale one day before the scheduled examination in return for illegal gratification.
He was produced before the special PMLA court on September 21 and was also remanded to 14 days of ED custody.
The agency has also traced a bank account belonging to Om Lakshmi Souharda Sahakari Sangha Niyamitha in Bidar, which it said was used to receive some of the money connected with the alleged illegal gratification.
A separate part of the ED investigation concerns what happened to the money after it was collected.
The agency said analysis of material seized during searches conducted between August 18 and August 24 showed that proceeds allegedly generated through the recruitment racket were moved through several channels.
These included bank transfers, purchases of gold jewellery, cash payments for air travel and other cash transactions.
The ED said the transactions were intended to conceal the nature and source of the proceeds and make them appear to be legitimate property.
“Analysis of the material seized during the searches conducted from 18/08/2026 to 24/08/2026 revealed that the proceeds generated from the aforesaid criminal activity were subsequently layered and utilised through various modes, including bank transfers, purchase of gold jewellery, cash payment for air travel and cash transactions, with the object of concealing the nature and source of the proceeds and projecting the same as untainted property,” the agency said.
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