KPSC scam: Basavaraj Kannale gets 14-day ED custody in Karnataka recruitment fraud
Synopsis
A Bengaluru court has handed the ED 14 days with KPSC scam accused Basavaraj Kannale — a man investigators say collected over ₹12 crore from job-seekers and funnelled ₹1.3 crore in cash to a suspended IAS officer who allegedly leaked exam papers the day before the test. With the Karnataka High Court calling it a 'fraud upon the Constitution' and three agencies now involved, this is Karnataka's most politically explosive recruitment scandal in years.
Key Takeaways
The Bengaluru 4th City Civil and Sessions Court remanded Basavaraj Kannale to 14-day ED custody on 29 September 2026 .
Suspended IAS officer Gyanendra Kumar Gangwar , former KPSC Controller of Examinations, is also reportedly in ED custody and allegedly admitted to leaking the exam paper to Kannale.
Kannale reportedly collected over ₹12 crore from candidates, charging ₹70 lakh–₹90 lakh per post ; a direct cash payment of ₹1.3 crore to Gangwar was allegedly traced.
The Karnataka High Court on 21 September 2026 termed the fraud a 'fraud upon the Constitution' and set up a five-member SIT headed by DGP Alok Kumar with a 100-day deadline.
Shivakumar has said the government may shut down the KPSC and plans to appeal against the High Court's SIT order.
Kumaraswamy and BJP leaders have escalated political attacks, with BJP claiming ministers could face arrest.
The Bengaluru 4th City Civil and Sessions Court on Tuesday, 29 September 2026 remanded Basavaraj Kannale, a key accused in the alleged Karnataka Public Service Commission (KPSC) recruitment scam, to 14 days of Enforcement Directorate (ED) custody. The court allowed the ED's plea for custodial interrogation to facilitate further investigation into the fraud, which centred on the illegal recruitment of veterinary officers.
Key Developments in the Custody Hearing
ED officials produced Kannale before the court and sought his remand for extended questioning. The court granted the plea in full, ordering a 14-day ED custody period. Kannale is not the only high-profile figure currently in agency custody — suspended IAS officer Gyanendra Kumar Gangwar, the former KPSC Controller of Examinations who was earlier arrested by the CID, is also reportedly in ED custody. According to investigators, Gangwar allegedly admitted to leaking the veterinary officer examination paper to Kannale a day before the test was conducted.
Scale of the Financial Irregularities
The probe has exposed what investigators describe as a systematic cash-for-jobs operation. Kannale reportedly collected over ₹12 crore from candidates, charging between ₹70 lakh and ₹90 lakh per post. Financial records allegedly show a direct cash payment of ₹1.3 crore to Gangwar. Investigators also uncovered expenditure on luxury goods, including a ₹23 lakh diamond necklace, as well as 65 flight tickets booked for the officer and an associate. A benami bank account holding ₹1.86 crore was also traced during the investigation.
High Court Calls It a 'Fraud Upon the Constitution'
The Karnataka High Court on 21 September 2026 described the manipulation in KPSC recruitments as a 'fraud upon the Constitution' and ordered a fresh, independent probe. The court constituted a five-member Special Investigation Team (SIT) headed by DGP Alok Kumar, with a 100-day deadline to complete the investigation and submit a final report. The scam has now drawn in three separate agencies — the High Court-appointed SIT, the CID, and the ED — making it one of the most complex multi-agency probes in Karnataka's recent administrative history.
Political Fallout and Government Response
The scandal has triggered sharp political exchanges. Union Minister H.D. Kumaraswamy has targeted Home Minister Priyank Kharge over the alleged illegal recruitments, while Bharatiya Janata Party (BJP) leaders have claimed that several ministers could face arrest in connection with the case. Opposition parties have mockingly rechristened the body the 'Karnataka Private Commission' and demanded accountability from the ruling government.
Karnataka Chief Minister D.K. Shivakumar has said the state government is consulting legal experts on the possibility of shutting down the KPSC entirely, reportedly calling the institution one where 'thieves are stationed.' Notably, CM Shivakumar also indicated the state would appeal against the High Court's decision to constitute the SIT, characterising it as judicial interference — a position that critics argue is at odds with the government's own stated commitment to accountability.
What Comes Next
With Kannale now in 14-day ED custody and Gangwar already under agency remand, investigators are expected to map the full financial trail and identify additional beneficiaries. The SIT has 100 days from its constitution on 21 September 2026 to file its report, placing its deadline around late December. The outcome of the state government's anticipated appeal against the SIT order will be a critical legal flashpoint to watch.
Point of View
And the state government's stated intent to appeal against the SIT order sends a troubling signal about whose interests it is protecting. Three agencies investigating the same case risks jurisdictional overlap and evidentiary confusion; without clear coordination protocols, the probe could be slowed precisely when momentum matters most. The political noise — ministers trading blame, opposition rebranding the KPSC — risks drowning out the central question: how many candidates were defrauded, and will they get justice?
NationPress
29 Sept 2026
Frequently Asked Questions
Who is Basavaraj Kannale and why has he been remanded to ED custody?
Basavaraj Kannale is a key accused in the Karnataka Public Service Commission (KPSC) recruitment scam involving veterinary officer posts. The Bengaluru 4th City Civil and Sessions Court remanded him to 14-day ED custody on 29 September 2026 to facilitate further financial investigation into allegations that he collected over ₹12 crore from candidates and facilitated exam paper leaks.
What role did suspended IAS officer Gyanendra Kumar Gangwar play in the KPSC scam?
Gangwar, the former KPSC Controller of Examinations, was arrested by the CID and is reportedly in ED custody. According to investigators, he allegedly admitted to leaking the veterinary officer exam paper to Kannale a day before the test. A direct cash payment of ₹1.3 crore to Gangwar was allegedly traced during the probe.
What did the Karnataka High Court say about the KPSC scam?
The Karnataka High Court on 21 September 2026 described the manipulation in KPSC recruitments as a 'fraud upon the Constitution.' It ordered a fresh probe and constituted a five-member SIT headed by DGP Alok Kumar, with a 100-day deadline to complete the investigation and file a final report.
How much money was allegedly involved in the KPSC recruitment scam?
Investigators reportedly found that Kannale collected over ₹12 crore from candidates, charging ₹70 lakh to ₹90 lakh per post. Other alleged financial irregularities include a ₹1.3 crore cash payment to Gangwar, a ₹23 lakh diamond necklace, 65 flight tickets, and a benami bank account holding ₹1.86 crore.
What is the Karnataka government's position on the KPSC scam investigation?
Chief Minister D.K. Shivakumar has said the government is consulting legal experts on shutting down the KPSC, describing it as an institution compromised by illegal activity. However, he also indicated the state would appeal against the High Court's decision to constitute the SIT, calling it interference — a stance that has drawn criticism from opposition parties.
