The Enforcement Directorate (ED) has arrested suspended Karnataka Public Service Commission (KPSC) chairman Shivashankarappa S Sahukar and KPSC member BV Geetha in connection with its money laundering probe into alleged irregularities in the recruitment of veterinary officers in Karnataka, officials said on Wednesday.

The ED arrested the two officials on Tuesday after carrying out a fresh round of searches at premises linked to them in Bengaluru.

The agency searched Sahukar at his flat in the Dollars Colony area of Sanjaynagar and also questioned Geetha as part of the investigation.

The ED is expected to produce the two before a special court dealing with cases under the Prevention of Money Laundering Act (PMLA) on Wednesday, where it is likely to seek their custody for further questioning.

The arrests mark a significant escalation in the agency's investigation into alleged corruption in the KPSC recruitment process.

The probe began after allegations surfaced of serious manipulation in the final selection of candidates for the veterinary officers' recruitment examination.

Probe widens after paper leak allegations

The ED's money laundering case is linked to allegations that the question paper for the veterinary officers' recruitment examination was leaked and supplied to candidates in return for illegal payments.

The agency had earlier arrested Basavaraj Kannale on September 17 and Gyanendra Kumar Gangwar, the then KPSC Controller of Examinations, on September 18.

According to the ED, Kannale allegedly acted as an intermediary, while Gangwar is accused of facilitating the leakage of the examination paper and answer keys.

The agency alleged that candidates paid between Rs 30 lakh and Rs 40 lakh each for access to the leaked material.

The ED has said the money constituted illegal gratification generated through the alleged recruitment racket.

The Special PMLA Court subsequently remanded both Kannale and Gangwar to ED custody for 14 days.

The investigation has since expanded beyond the alleged paper leak. Statements recorded from the arrested accused have also led investigators to examine how candidate information and merit lists may have been used to identify aspirants who could allegedly be approached for bribes.

According to the ED's submissions before a special court, KPSC officials allegedly accessed information about candidates' prospects after the publication of a merit list.

Investigators are examining allegations that intermediaries and officials subsequently contacted candidates and negotiated payments depending on their chances of selection.

The veterinary officers' recruitment examination involved 400 vacancies. The alleged irregularities have triggered probes by both the Karnataka Police's Criminal Investigation Department and the ED.

The ED is investigating under the PMLA, which allows it to trace and investigate the movement and use of alleged proceeds of crime generated through scheduled offenses.

Fresh searches lead to Sahukar, Geetha arrests

The latest arrests followed an earlier ED search operation on August 18, when the agency searched 21 premises across Karnataka and Gujarat as part of the investigation.

The premises searched during that operation spanned Bengaluru, Hassan, Chitradurga, Davanagere, Raichur, Karwar, Kalaburagi and Belagavi in Karnataka, as well as Ahmedabad in Gujarat.

The locations included premises linked to KPSC officials, alleged middlemen, candidates and entities connected with the examination process.The ED searched 

Sahukar's premises during the August operation. The ED subsequently returned to his Bengaluru residence on Tuesday for a fresh search before taking him into custody.

The ED suspended Sahukar as KPSC chairman in August amid allegations of recruitment irregularities. The ED is now examining his role as part of the wider money laundering probe into alleged corruption within the Commission.

The ED is also investigating Geetha's alleged role. The agency's latest action against the two KPSC officials follows statements and information it gathered while questioning Gangwar and Kannale.

Investigators are now examining whether the alleged recruitment irregularities were limited to the veterinary officers' examination or reflected a wider pattern in KPSC recruitment exercises.

The ED has already said it is examining alleged financial transactions linked to the recruitment process. The agency is also investigating the alleged flow of money linked to candidates seeking government appointments.

The case has raised questions over the integrity of recruitment conducted by a constitutional body responsible for selecting candidates for various government posts in Karnataka.

With Sahukar and Geetha now arrested, the ED is expected to question them about the alleged recruitment irregularities, the role of other officials and intermediaries, and the suspected movement of money linked to the alleged racket.

The agency's allegations remain subject to investigation and judicial scrutiny. The arrests do not by themselves establish guilt, and the accused will have the opportunity to present their defence before the court.