KPSC Scam: ED Traces Money Trail Linked to IAS Officer Gangwar’s Assets and Jewellery

Bengaluru, October 6: The Enforcement Directorate (ED) has expanded its investigation into the Karnataka Public Service Commission (KPSC) recruitment scam, focusing on several assets allegedly acquired illegally by arrested IAS officer Gyanendra Kumar Gangwar, including a luxury apartment near Bengaluru airport and gold and diamond jewellery.

Gangwar, who served as the Controller of Examinations at the KPSC, is accused by investigators of receiving around ₹1.30 crore out of the ₹1.52 crore allegedly collected from candidates in connection with the question-paper leak in the veterinary doctors’ recruitment examination.

The investigation has now turned towards an apartment at Godrej Royale Woods near Devanahalli. The ED has alleged before the Special PMLA Court that Gangwar purchased the flat in his brother’s name using money generated from the recruitment scam. However, police sources said Gangwar’s brother and other family members were unaware that the property had been purchased in his name and had never used the apartment.

Investigators suspect that Gangwar used the flat for private parties and meetings. The ED has told the court that the Devanahalli property was purchased from the proceeds of crime. The agency has alleged that money from the recruitment scam was transferred through intermediary Basavaraj Kannale and his associates.

The money trail has also led investigators to expensive jewellery allegedly purchased for Gangwar’s fiancée. The CID and ED have found that around ₹52 lakh was transferred to Gangwar through Kannale and his associates for the purchase of jewellery.

In March 2026, jewellery worth ₹29.94 lakh was reportedly purchased at Bhima Jewellers in Bengaluru, followed by another purchase worth around ₹23 lakh in July. Investigators have traced the payments for these purchases to bank accounts linked to Kannale and his associates.

Gangwar is also said to have given contradictory explanations to investigators regarding the jewellery purchases. At one stage, he reportedly claimed that his fiancée had issued cheques to reimburse the cost of the jewellery, while at another point he stated that the jewellery had been purchased as a birthday gift.

The ED is also investigating the source of ₹26 lakh deposited in cash into the bank accounts of Gangwar’s brother and sister-in-law between January and August 2025.

In addition, investigators are examining an under-construction house allegedly purchased for ₹25 lakh in Bareilly, Uttar Pradesh, in 2025. They are also looking into the real estate construction business started in Uttar Pradesh that year by Gangwar’s elder brother. Investigators are trying to determine whether these assets are linked to money allegedly obtained illegally through KPSC recruitments.

Gangwar, 41, served as the Controller of Examinations at the KPSC from January 2024 to March 2026. The CID arrested him on August 29, after which the ED arrested him on September 18.

The ED is also examining whether the alleged question-paper leak and recruitment irregularities were limited to the veterinary doctors’ examination or whether the network extended to other recruitment examinations conducted during Gangwar’s tenure. Against this backdrop, around 12 other KPSC examinations conducted during his tenure have also come under the scope of the investigation.

The scam has also cast a shadow over former KPSC chairman Shivashankarappa Sahukar. He is being investigated in connection with the veterinary officers’ recruitment case, while allegations that his daughter was appointed as an Industrial Extension Officer through illegal means are also being examined.

The Karnataka High Court has directed a Special Investigation Team (SIT) to investigate two cases of KPSC recruitment irregularities. However, the state government has challenged the order before the Supreme Court, arguing that the High Court did not make any adverse observations against the CID investigation in its order.

Thus, the KPSC scam investigation has moved beyond allegations of question-paper leaks and collection of money from candidates. It has now expanded to tracing the alleged proceeds of crime, including scrutiny of properties, bank accounts, jewellery and assets held in the names of family members.