KPSC recruitment case: Complaint before ED alleges crores in proceeds of crime

Bengaluru: A formal complaint and memorandum information has been submitted before the Directorate of Enforcement (ED), Bengaluru Zonal Office, seeking an enquiry and 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.

It may be noted that KPSC Chairman Shivashankarappa S. Sahukar was suspended and IAS officer Gyanendra Kumar Gangwar (former Controller of Examinations, KPSC) has been arrested and grilled by the SIT team of the Criminal Investigation Department (CID) in the case.

The complaint, received by the ED dated September 11 has come to light on Monday. The complaint without the name of the complainant, alleges a systematic corruption and bribery racket involving the KPSC Gazetted Probationers (KAS) Examination 2023-24 and other recruitment examinations conducted during the tenure of the then KPSC office-bearers.

According to the complaint, the alleged racket involved organised bribery, extortion of interview candidates, question paper tampering and generation of unaccounted "proceeds of crime" potentially exceeding Rs 1,000 crore.

The complaint has sought an investigation into alleged irregularities in the recruitment process for 384 Group 'A' and Group 'B' Gazetted Probationer posts, besides other examinations conducted by the KPSC.

It alleges that the underlying offences attract provisions of the Prevention of Corruption Act, 1988, as well as penal provisions relating to criminal conspiracy, cheating, breach of trust by public servants and extortion.

The complainant has alleged that cash collections running into tens of crores of rupees were made through alleged middlemen, staff drivers, private coaching operators and other intermediaries in connection with the selection of Assistant Commissioners, Tahsildars and Deputy Superintendents of Police.

The complaint states that such funds constitute "proceeds of crime" under Section 2(1)(u) of the PMLA and has urged the ED to trace, freeze and attach properties allegedly acquired through the racket.

According to the complaint, the KPSC conducted recruitment for 384 Gazetted Probationer posts under notifications issued on February 26, 2024, and February 13, 2025. Of the 384 posts, 310 were from the Residual Parent Cadre and 74 from the Kalyana Karnataka/Hyderabad-Karnataka cadre.

The complaint has also alleged violation of the prescribed 1:3 ratio for calling candidates for the personality test (interview). It states that for 384 notified vacancies, 1,152 candidates should have been shortlisted under the statutory rules.

However, the complaint alleges that the KPSC illegally expanded the list to 1,158 candidates by adding six extra candidates, allegedly to accommodate pre-selected candidates who had paid kickbacks.

The complaint has urged the ED to examine the alleged financial transactions, identify the persons involved and take action under the provisions of the PMLA.

The KPSC recruitment scam allegedly involves OMR sheet tampering, and the alleged illegal sale of government jobs purportedly in the recruitment of 400 veterinary officers. The alleged fraud involved question paper leaks, nepotism, and tampering with OMR answer sheets to inflate marks for favoured candidates.

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