Bengaluru, October 20, 2026: The Enforcement Directorate (ED) has expanded its investigation into the alleged Karnataka Public Service Commission (KPSC) jobs-for-cash racket after records reportedly indicated that suspended KPSC chairman Shivashankarappa S Sahukar received more than ₹4 crore in cash over a period of approximately four months.
The agency is examining the source of the funds, the alleged movement of money and whether the cash was linked to proceeds generated through alleged manipulation of government recruitment processes.
ED Traces Alleged Cash Transactions Exceeding ₹4 Crore
According to the investigation, an associate linked to Sahukar allegedly received more than ₹4 crore in cash between August and December 2025.
The ED suspects that the money was subsequently transferred to Sahukar in multiple instalments. Investigators are examining whether the transactions were connected to alleged payments made by candidates seeking government jobs.
Handwritten Notes and Records Recovered During Searches
The agency reportedly recovered handwritten notes and other documents during searches at the residence of an associate identified as Dayananda, a KPSC employee.
The documents allegedly contained details of monthly cash collections and subsequent transfers. Investigators are attempting to establish who supplied the money, who handled the transactions and the purpose behind the collections.
Monthly Cash Collections Allegedly Near ₹1 Crore
Records reportedly examined during the investigation indicated monthly cash collections of approximately ₹99.76 lakh.
The ED is investigating whether these collections were connected to candidates allegedly paying intermediaries to secure government appointments or favourable outcomes in KPSC recruitment examinations.
The alleged figures and the purpose of the transactions remain subject to investigation.
Candidates Allegedly Asked to Pay Large Sums for Government Jobs
The case also involves allegations that candidates were asked to pay substantial amounts in exchange for government positions.
According to details reportedly placed before the court, one candidate allegedly agreed to pay around ₹1.25 crore for a Karnataka Administrative Service (KAS) post.
Investigators are examining whether similar alleged payments were made in connection with other government recruitment processes.
Veterinary Officers’ Recruitment Examination Under Scanner
The ED is also investigating the KPSC Veterinary Officers’ Recruitment Examination, which involved 400 posts.
The agency has alleged that confidential examination material, including answer keys, was leaked to selected candidates in exchange for bribes.
Suspended chairman Sahukar and KPSC member B V Geetha were arrested earlier in October as part of the money-laundering investigation linked to the alleged recruitment irregularities.
ED Examines Alleged Answer-Key Leaks
Investigators have also alleged that confidential answer keys for multiple KPSC examinations were leaked during the tenure of former Controller of Examinations Gyanendra Kumar Gangwar.
The agency is examining whether officials and intermediaries coordinated to provide examination-related information to candidates who allegedly paid bribes.
Sahukar Denies Alleged Cash Dealings
Sahukar has reportedly denied the cash transactions being examined by the ED.
The agency has told the court that further investigation is necessary to determine the source of the funds and whether they constitute proceeds of crime linked to alleged irregularities in recruitment.
The allegations have not been established as proven facts, and the investigation is continuing.
Sahukar and Geetha Remanded to Judicial Custody
A special court has reportedly remanded Sahukar and KPSC member B V Geetha to judicial custody until October 25.
Sahukar’s request for interim bail on medical grounds was rejected, while proceedings related to Geetha’s bail plea are continuing.
Wider KPSC Recruitment Network Under Investigation
The alleged ₹4 crore cash trail forms part of a wider probe into suspected corruption in KPSC recruitment.
Earlier, the ED told a court that it was also examining a separate alleged cash trail of ₹7.10 crore involving a suspected middleman and a banker associate.
Investigators are working to identify the officials, intermediaries and candidates who may have been involved in the alleged scheme.
ED Continues Money-Trail Investigation
The ED is expected to analyse financial records, digital evidence and statements from individuals connected to the case to establish how the alleged funds were collected and distributed.
Further questioning or action against additional individuals may follow if investigators find evidence of their involvement.
Source: The Indian Express, Enforcement Directorate
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