India ED Arrests IAS Officer and Middleman in KPSC Veterinary Recruitment Money Laundering Probe

India’s Enforcement Directorate has arrested suspended IAS officer Gyanendra Kumar Gangwar and alleged middleman Basavaraj Kannale under the Prevention of Money Laundering Act in connection with an investigation into alleged irregularities in the Karnataka Public Service Commission’s recruitment of veterinary officers.

The arrests mark a new stage in a case that was already being investigated by Karnataka’s Criminal Investigation Department. Gangwar, who served as KPSC examination controller, and Kannale had previously been arrested in the underlying criminal investigation and were being held at Bengaluru Central Prison. A court had subsequently permitted the Enforcement Directorate to question them in custody as part of its money laundering inquiry.

Investigators allege that confidential material for the veterinary officer recruitment examination held in January 2026 was leaked and supplied to selected candidates in exchange for payments. According to details placed before the court in the underlying investigation, candidates were allegedly offered recruitment for amounts ranging from ₹35 lakh to ₹80 lakh. Investigators have also examined allegations that selected candidates were coached shortly before the examination using leaked material.

The financial trail has become a central part of the case. Court submissions reported from the CID investigation indicate that payments linked to candidates moved through bank accounts and that some of the funds were allegedly used for personal expenditure, including gold and diamond jewellery and travel expenses associated with Gangwar. These allegations remain subject to investigation and have not been established as findings of guilt.

The Enforcement Directorate had earlier conducted searches at multiple locations under the PMLA while examining whether funds generated through the alleged recruitment scheme constituted proceeds of crime and how those funds were subsequently handled or spent.

With Gangwar and Kannale now placed under arrest in the money laundering case, the Enforcement Directorate is expected to seek further custody through the competent special court as the investigation continues. Other individuals connected with the recruitment process also remain under scrutiny.