The Enforcement Directorate (ED) has revealed that candidates in the Karnataka Public Service Commission (KPSC) Veterinary Officer recruitment examination scam were allegedly taken to a resort on the outskirts of Bengaluru and made to memorise leaked question papers containing correct answers — a disclosure that adds a dramatic operational dimension to what investigators describe as a large-scale, money-driven exam fraud.

Key Allegations Against the Accused

According to the ED's official statement released on Wednesday, 30 September, the agency's probe into the recruitment of 400 Veterinary Officers has implicated IAS officer Gyanendra Kumar Gangwar and Bharatiya Janata Party (BJP) leader Basavaraj Kannale as the principal accused. The ED alleged that Gangwar, while serving as KPSC Controller of Examinations, misused his official position to leak the question paper — along with correct answers — to Kannale a day before the scheduled examination, allegedly in exchange for illegal gratification.

Kannale, according to the agency, then identified and approached multiple candidates, promising to facilitate their selection. The investigation found that around ₹80 lakh was initially demanded from each candidate, later negotiated to between ₹30 lakh and ₹40 lakh per candidate.

The Resort Operation: How the Fraud Was Executed

In what investigators describe as one of the more brazen details of the case, the ED alleged that selected candidates were transported to a resort on the outskirts of Bengaluru, where they were provided the leaked question paper with correct answers and made to memorise them under the supervision of Kannale and his associates. On the day of the examination, the candidates were allegedly ferried to their respective examination centres in vehicles arranged by Kannale's network.

Portions of the agreed payment were collected in advance through both cash and banking channels. To secure the remaining balance, some candidates were allegedly made to furnish blank cheques and promissory notes, several of which were subsequently recovered and seized during searches.

Money Laundering Trail

The ED said the bank account of Om Lakshmi Sowkar Sahakari Sangha Niyamitha, Bidar, was allegedly used to receive amounts connected with the illegal gratification. Analysis of material seized during searches conducted between 18 September and 24 September indicated that proceeds from the alleged criminal activity were subsequently layered through bank transfers, purchase of gold jewellery, cash payments for travel, and other cash transactions — allegedly to conceal the nature and source of funds and project them as untainted property.

Arrests and Court Proceedings

The ED arrested Kannale on 17 September under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court for PMLA cases (CCH-4), which granted 14 days' custody to the ED on 29 September. Gangwar was formally arrested on 18 September for his alleged role in facilitating the generation of proceeds of crime. He was produced before the Special Court on 21 September, and the court similarly granted 14 days' custody to the ED for further investigation.

What Comes Next

The ED confirmed that further investigation is ongoing. The case raises serious questions about systemic vulnerabilities in public recruitment processes and the role of entrenched political and bureaucratic networks in exploiting them. With custody remands active and financial forensics continuing, additional arrests or charge-sheets are possible in the weeks ahead.