Enforcement Directorate Receives Complaint Seeking Money Laundering Probe Into ₹1,000 Crore KPSC Recruitment Corruption

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The Enforcement Directorate (ED) has received a formal complaint seeking a money laundering investigation under the Prevention of Money Laundering Act, 2002 (PMLA) into alleged corruption exceeding ₹1,000 crore in Karnataka Public Service Commission (KPSC) recruitment drives, according to an official familiar with the matter.

The complaint was submitted to the ED’s Bengaluru Zonal Office on September 11 and was made public on Monday. It requests the federal agency to register an Enforcement Case Information Report (ECIR) to trace, freeze, and attach assets allegedly acquired through the corruption network.

According to the official, the unnamed complainant alleges that the KPSC Gazetted Probationers examination for 2023–24, along with other competitive tests, was compromised by an organized network comprising middlemen, KPSC staff, drivers, private coaching institute operators, and other intermediaries. The complaint states that kickbacks ran into tens of crores of rupees from candidates seeking administrative positions, including Assistant Commissioner, Tahsildar, and Deputy Superintendent of Police.

The recruitment drive involved 384 vacant posts, consisting of 310 in the Residual Parent Cadre and 74 in the Kalyana Karnataka (formerly Hyderabad-Karnataka) cadre. Under prescribed guidelines, candidates called for personality tests should follow a 1:3 shortlist ratio against available vacancies, which meant 1,152 candidates should have been selected. However, the complaint alleges that KPSC shortlisted 1,158 candidates, illegally adding six extra individuals to accommodate candidates who had paid bribes.

The corruption allegations also extend to the recruitment of approximately 400 veterinary officers. Investigators are examining claims of question paper leaks, nepotism, and the manipulation of Optical Mark Recognition (OMR) answer sheets to artificially boost marks for selected candidates.

The broader state-level investigation, conducted by the Criminal Investigation Department’s (CID) Special Investigation Team (SIT), has already resulted in administrative and legal actions against top officials. KPSC Chairman Shivashankarappa S Sahukar has been suspended, while IAS officer Gyanendra Kumar Gangwar, who previously served as KPSC Controller of Examinations, was arrested and questioned by the SIT.

Investigators are scrutinizing financial transactions linked to Gangwar, including an alleged purchase of jewellery valued at approximately ₹26 lakh for an associate. Sources indicate that the woman, who is from Ayodhya, was taken to a jewellery showroom on Dickenson Road in Bengaluru. The SIT has secured both the purchase receipt and CCTV footage from the establishment as part of its evidence.

Sources
– [Hindustan Times – India News](https://www.hindustantimes.com/india-news/ed-gets-complaint-seeking-probe-into-kpsc-case-101789414509047.html)

Source: Hindustan Times – India News

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Story synopsis gathered from: Hindustan Times – India News — source

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