ED arrests KPSC official, broker for leaking Veterinary Officer exam papers

This is a press release from the Directorate of Enforcement (ED), Bengaluru Zonal Office, detailing the arrest of two individuals for their roles in the leakage of the Veterinary Officers’ Recruitment Examination question paper and the subsequent laundering of proceeds of crime. It matters to citizens as it highlights a significant breach of integrity in a state-level public service recruitment process and the enforcement actions taken against it.

Who it concerns: The document concerns Basavaraj Kannale, Gyanendra Kumar Gangwar (IAS, then Controller of Examinations of KPSC), the Directorate of Enforcement (ED), the Karnataka Public Service Commission (KPSC), the candidates involved in the recruitment exam, and the Hon’ble Special Court for PMLA cases (CCH-4).

What the ED says it did

• ED is investigating irregularities in the Veterinary Officers’ Recruitment Examination for 400 posts based on FIRs under the Bharatiya Nyaya Sanhita, 2023.
• Basavaraj Kannale was arrested on 17/09/2026 for facilitating illegal selection by providing leaked question papers with correct answers in exchange for gratification.
• Gyanendra Kumar Gangwar, IAS, was arrested on 18/09/2026 for leaking the question paper to Basavaraj Kannale one day prior to the exam in consideration of illegal gratification.
• The Special Court for PMLA cases (CCH-4) granted 14 days' custody to ED for both arrested individuals.
• Investigation revealed that Rs. 80 lakh was initially demanded per candidate, settled at Rs. 30-40 lakh, with portions collected via cash, banking channels, blank signed cheques, and promissory notes.
• The bank account of M/s Om Lakshmi Souharda Sahakari Sangha Niyamitha, Bidar, was used to receive amounts connected to the illegal gratification.
• Candidates were taken to a resort near Bengaluru to memorize answers under supervision and transported to exam centers in vehicles arranged by Basavaraj Kannale and associates.
• Seized material indicates proceeds were layered through bank transfers, gold purchases, air travel, and cash transactions to conceal their source.

Also in the document

• The investigation is based on multiple FIRs registered at Vidhana Soudha Police Station, Bengaluru.
• Search and seizure proceedings were conducted between 18/08/2026 and 24/08/2026.
• Both arrested individuals were already in judicial custody at the time of their formal arrest by ED.