KPSC recruitment scam: ED complaint alleges ₹1,000 crore proceeds of crime
Synopsis
An anonymous complaint before the ED's Bengaluru office alleges that corruption in KPSC recruitment — spanning bribery, OMR tampering and question paper leaks — generated over ₹1,000 crore in illicit proceeds. With the KPSC chairman suspended and an IAS officer already arrested, the money laundering angle could dramatically widen the scope of the investigation.
Key Takeaways
A formal complaint seeking an ECIR under PMLA has been filed before the ED Bengaluru Zonal Office , targeting alleged corruption in KPSC recruitment.
The complaint alleges proceeds of crime potentially exceeding ₹1,000 crore , routed through middlemen, coaching operators, and staff drivers.
KPSC Chairman Shivashankarappa S.
Sahukar has been suspended; IAS officer Gyanendra Kumar Gangwar has been arrested by the CID-SIT.
Alleged irregularities cover 384 Gazetted Probationer posts , with the interview shortlist reportedly expanded illegally from 1,152 to 1,158 candidates.
The scam allegedly also involves OMR sheet tampering and illegal job sales in the recruitment of 400 veterinary officers .
The complainant has urged the ED to trace, freeze and attach properties acquired through the alleged racket under Section 2(1)(u) of the PMLA .
A formal complaint and memorandum of information has been submitted before the Directorate of Enforcement (ED), Bengaluru Zonal Office, seeking registration of an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) in connection with alleged large-scale corruption in Karnataka Public Service Commission (KPSC) recruitment examinations. The complaint, dated 11 September 2025, came to light on Monday, 14 September 2026.
What the Complaint Alleges
The complaint — filed without a named complainant — alleges a systematic corruption and bribery racket centred on the KPSC Gazetted Probationers (KAS) Examination 2023-24 and other recruitment drives conducted during the tenure of then KPSC office-bearers. According to the complaint, the alleged racket involved organised bribery, extortion of interview candidates, question paper tampering, and the generation of unaccounted 'proceeds of crime' potentially exceeding ₹1,000 crore.
The complainant has urged the ED to trace, freeze, and attach properties allegedly acquired through the racket, invoking Section 2(1)(u) of the PMLA, which defines proceeds of crime. The complaint additionally cites provisions of the Prevention of Corruption Act, 1988, along with penal provisions relating to criminal conspiracy, cheating, breach of trust by public servants, and extortion.
Key Accused and Arrests So Far
KPSC Chairman Shivashankarappa S. Sahukar has been suspended in connection with the case. IAS officer Gyanendra Kumar Gangwar, former Controller of Examinations at KPSC, has been arrested and interrogated by the Special Investigation Team (SIT) of the Criminal Investigation Department (CID). These developments predate the ED complaint but form the backdrop against which the money laundering angle is now being pursued.
Alleged Irregularities in the 384-Post Recruitment
The complaint specifically targets recruitment for 384 Group 'A' and Group 'B' Gazetted Probationer posts notified on 26 February 2024 and 13 February 2025. Of the 384 posts, 310 belonged to the Residual Parent Cadre and 74 to the Kalyana Karnataka/Hyderabad-Karnataka cadre.
Under statutory rules, 1,152 candidates should have been shortlisted for the personality test (interview) in a 1:3 ratio. The complaint alleges the KPSC illegally expanded the shortlist to 1,158 candidates by adding six extra names, reportedly to accommodate pre-selected candidates who had allegedly paid kickbacks. Cash collections running into tens of crores of rupees were allegedly routed through middlemen, staff drivers, private coaching operators, and other intermediaries in connection with the selection of Assistant Commissioners, Tahsildars, and Deputy Superintendents of Police.
OMR Tampering and Broader Fraud Alleged
Beyond the KAS examination, the complaint points to alleged OMR sheet tampering and the purported illegal sale of government posts in the recruitment of 400 veterinary officers. The alleged fraud is said to have involved question paper leaks, nepotism, and manipulation of OMR answer sheets to artificially inflate marks for favoured candidates — a pattern critics argue reflects systemic failure in examination oversight.
What the ED Has Been Asked to Do
The complainant has urged the ED to examine alleged financial transactions end-to-end, identify all individuals involved, and initiate action under the PMLA. The submission of a formal complaint is the first step toward the ED registering an ECIR, after which an independent money laundering investigation can formally commence. Whether the ED accepts the complaint and initiates proceedings will be closely watched given the scale of alleged financial wrongdoing.
Point of View
Where attachment of properties and prosecution timelines operate differently. The alleged ₹1,000 crore figure, if substantiated, would make this one of the largest public service recruitment frauds in Karnataka's history. What the complaint does not yet resolve is the identity of the political or administrative patrons who allegedly enabled the racket to run across multiple examination cycles. The CID's arrest of a senior IAS officer is significant, but the ED's entry raises the stakes: if the agency registers an ECIR, asset trails could surface beneficiaries well beyond those already named.
NationPress
14 Sept 2026
Frequently Asked Questions
What is the KPSC recruitment scam?
The KPSC recruitment scam refers to alleged large-scale corruption in Karnataka Public Service Commission examinations, including the KAS Gazetted Probationers Examination 2023-24. The alleged fraud involves bribery, question paper leaks, OMR sheet tampering, and the illegal sale of government posts, with proceeds of crime reportedly exceeding ₹1,000 crore.
Why has a complaint been filed before the ED?
A complaint has been submitted to the Directorate of Enforcement, Bengaluru, seeking registration of an ECIR under the Prevention of Money Laundering Act. The complainant alleges that cash collected through middlemen and intermediaries constitutes proceeds of crime under PMLA, and has urged the ED to trace, freeze, and attach properties acquired through the alleged racket.
Who has been arrested or suspended in the KPSC case so far?
KPSC Chairman Shivashankarappa S. Sahukar has been suspended in connection with the scam. IAS officer Gyanendra Kumar Gangwar, former Controller of Examinations at KPSC, has been arrested and interrogated by the CID's Special Investigation Team.
What specific irregularities are alleged in the 384-post recruitment?
The complaint alleges that the KPSC illegally expanded the interview shortlist from the statutory 1,152 candidates to 1,158 — adding six extra names allegedly to accommodate pre-selected candidates who had paid kickbacks. The recruitment covered 384 Group 'A' and Group 'B' Gazetted Probationer posts across two notifications issued in February 2024 and February 2025.
What happens next in the KPSC ED complaint case?
The ED will decide whether to register a formal Enforcement Case Information Report based on the complaint. If an ECIR is registered, the agency can independently investigate money laundering, record statements, and initiate attachment of properties. The CID-SIT probe at the state level continues in parallel.
