The Enforcement Directorate has searched 21 locations across Karnataka and Ahmedabad to investigate alleged bribery and exam leaks in Veterinary Officer recruitment. The probe involves KPSC officials and the digital evaluation firm, Edutest Solutions. While this investigation highlights governance risks in government recruitment processes, Edutest Solutions is a private company and is not listed on Indian stock exchanges.
The Enforcement Directorate (ED) initiated a major money laundering investigation on Tuesday, conducting search operations at 21 locations across Karnataka and Ahmedabad. The operation targets the Karnataka Public Service Commission (KPSC) regarding alleged irregularities in the recruitment process for Veterinary Officers. The probe is being conducted under the Prevention of Money Laundering Act (PMLA) to investigate claims of financial misconduct and procedural manipulation.
The searches were concentrated on several key locations, including the KPSC office, the residence of the suspended KPSC Chairman, Shivashankarappa S Sahukar, and the premises of Edutest Solutions Private Limited. Edutest Solutions is the private firm responsible for the digital evaluation of examination papers for the recruitment drive. Other locations raided included properties linked to middlemen and candidates allegedly involved in the selection process across various districts, including Bengaluru, Hassan, and Belagavi.
Investigators are scrutinizing serious allegations of malpractices that reportedly occurred during the final selection stages. These claims include demands for bribes ranging from ₹70 lakh to ₹80 lakh per candidate in exchange for guaranteed selection. The ED is also examining reports of examination paper leaks, tampering with Optical Mark Recognition (OMR) answer sheets, and a broader manipulation of the selection process to favor specific individuals. The investigation follows a series of First Information Reports (FIRs) filed in Bengaluru, which included evidence such as audio recordings allegedly detailing the bribe demands.
From a business and governance perspective, this event highlights the operational risks inherent in the government recruitment vendor ecosystem. Edutest Solutions is a private, unlisted company and does not have any direct presence on the Indian stock market. Consequently, there is no direct impact on any listed equities or stock market indices. However, the involvement of private service providers in public recruitment processes remains an area where investors often monitor for regulatory scrutiny and potential impacts on government contract reliability.
The suspended KPSC Chairman, Shivashankarappa S Sahukar, has been central to the controversy, having been removed from his position in July following separate allegations regarding the recruitment of his own family members. As the investigation continues, the ED is analyzing digital and documentary evidence to map the suspected money trail and confirm the extent of the alleged manipulation. The key monitorables for stakeholders and the public will be the progress of the ED’s findings, potential legal actions against the parties involved, and any subsequent reforms in the government recruitment vendor management system.