A deep network of illicit financial transactions and organized coordination has come to light during the inquiry into the question paper leak for the Karnataka Public Service Commission veterinary officer recruitment test. Investigators have tracked approximately Rs 92 lakh transferred through banking channels, alongside Rs 60 lakh handed over directly in cash by candidates. The inquiry gained momentum following the arrest of former controller of examinations and IAS officer Gyanendra Kumar Gangwar on August 29, which was promptly followed by the custody of Basavaraj Kannale, an intermediary, on August 31.
Organized Coaching Across Private Properties
Authorities subjected 40 examinees to extensive questioning, culminating in 29 candidates being officially named as accused in the ongoing proceedings. The arrangements involved distributing between 60 to 80 questions per paper in advance to selected applicants. To ensure the beneficiaries cleared the evaluation, special preparatory sessions were organized inside three private villas situated close to Devanahalli, where candidates were systematically coached on the leaked material.
Luxury Purchases and Financial Freezes
The money collected from candidates moved through regular and cooperative banking systems. A substantial volume of transactions was routed using Kotak Mahindra Bank and Om Lakshmi Souharda Sahakari Bank in Tilakwadi. From these corrupt proceeds, an amount of Rs 22 lakh was utilized to acquire a diamond necklace intended for an associate of Gangwar. In response, authorities have moved swiftly to freeze approximately Rs 1.40 crore lying across connected bank balances, alongside executing physical seizures of Rs 5.76 lakh in liquid currency.
Travel Restrictions and Bail Petitions
To prevent key figures from leaving jurisdiction, look-out circulars were issued against former Karnataka Public Service Commission chief Shivashankarappa Sahukar, former member Shanta Hosamani, and office-bearers of the cooperative bank. The judiciary has taken a firm stance by turning down advance bail pleas submitted by Sahukar, Kannale, and multiple implicated candidates. A formal hearing regarding Gangwar's regular bail plea is scheduled for Tuesday.
Origins of the Recruitment Dispute
The controversy traces back to the examination held on January 8, 2026, aimed at filling 400 veterinary officer openings. Public unrest erupted immediately after the final selection roster was published on July 17. Serious allegations indicated that government appointments were being auctioned through syndicates for sums ranging between Rs 80 lakh and Rs 1 crore per post. The disclosure triggered widespread street demonstrations across the state, prompting the commission to withdraw the selection list and leading the Karnataka administration to hand over the inquiry to the Criminal Investigation Department, which subsequently registered multiple formal complaints.
