Bengaluru. An apartment purchased in the name of a relative of arrested IAS officer Gyanendra Kumar Gangwar has come under the scrutiny of the Enforcement Directorate (ED) in connection with an alleged recruitment examination scam involving the Karnataka Public Service Commission (KPSC). According to police sources, the property, located near Bengaluru International Airport in Devanahalli, was allegedly used by Gangwar for private activities.
Gangwar was serving as KPSC’s controller of examinations when the recruitment examination for veterinary doctors was conducted on January 8 and 9. According to allegations emerging from the investigation, around 20 candidates allegedly paid between ₹20 lakh and ₹40 lakh each in exchange for access to the leaked examination paper. The total amount allegedly collected from candidates has been put at around ₹1.52 crore, of which approximately ₹1.30 crore was allegedly received by Gangwar.
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Several details regarding the alleged flow of money and the purchase of property reportedly emerged during the interrogation of middleman Basavaraj Kannale, who was arrested in connection with the case. Investigating agencies have alleged that Kannale was closely associated with Gangwar and played a role in collecting alleged bribes from candidates.
Gangwar served as KPSC’s controller of examinations from January 2024 to March 2026. The Criminal Investigation Department (CID) arrested him on August 29, while the ED arrested him on September 18. Investigators are examining how the alleged proceeds of the recruitment fraud were used and whether they were diverted into property, jewellery or other personal expenses.
According to the investigation, a portion of the alleged proceeds of crime was used to purchase an apartment in the name of Gangwar’s brother at the Godrej Royal Woods complex in Devanahalli. Police sources have claimed that the family members in whose name the property was purchased were unaware of it and allegedly never used or visited the apartment. Gangwar is alleged to have used the property for private gatherings and other activities.
Gangwar has also reportedly told the ED that part of the money received from Kannale was used to purchase the apartment in his brother’s name. The agency is separately investigating purchases of gold and diamond jewellery allegedly made using money linked to the recruitment fraud.
According to the investigation, around ₹52 lakh was allegedly routed to Gangwar through bank accounts operated by Kannale and his associates. The money was allegedly used for purchasing expensive gold and diamond jewellery from a jewellery showroom in Bengaluru. Investigators have traced jewellery purchases worth around ₹29.94 lakh in March 2026 and another ₹23 lakh in July 2026.
The CID investigation has alleged that ₹15 lakh for the March jewellery purchase came from the Kotak Mahindra Bank account of Balu Reddy, an associate of Kannale, while another ₹15 lakh was transferred from an account at Om Lakshmi Souharda Sahakari Bank in Bidar. Investigators have alleged that some candidates had transferred bribe money through the cooperative bank.
The July jewellery purchase is also under investigation. According to the allegations, ₹8 lakh was provided through Kannale’s accountant Umesh, while another ₹15 lakh was allegedly provided through Onkar Kamshetti, associated with the Om Lakshmi Souharda Sahakari Bank in Bidar. Investigators have noted that Gangwar made differing claims regarding the jewellery payments. In one account, he reportedly said his fiancée had issued cheques to repay the cost, while in another, the jewellery was described as a birthday gift.
The ED is also investigating possible irregularities in 12 other KPSC examinations conducted during Gangwar’s tenure from January 2024 to March 2026. The agency is examining whether similar allegations of paper leaks and bribery were involved in other recruitment examinations.
Investigators are also examining a semi-constructed house allegedly purchased in Bareilly in 2025 for ₹25 lakh and a real estate construction business launched by Gangwar’s elder brothers in Uttar Pradesh in 2025. The ED is probing whether these assets or business activities have any connection with alleged illegal gratification received in the KPSC case.
The Karnataka High Court has ordered a Special Investigation Team (SIT) probe into two cases involving alleged KPSC recruitment irregularities. The Karnataka government has challenged the order before the Supreme Court. Meanwhile, former KPSC chairman Shivashankarappa Sahukar is also under investigation in connection with the veterinary officers’ recruitment case and allegations concerning the appointment of his daughter to the post of industrial extension officer through illegal means.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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