Bidar, 5 September

Basavaraj Kannale, a key accused in the KPSC Veterinary Officer recruitment scam, has allegedly bought crores worth of agricultural land in Bhalki, Bidar district, and built a lavish dairy farm, raising suspicion of money laundering. But barely a few years ago, he was reportedly living an ordinary life. 

Kannale, a native of Donagapur village in Bhalki taluk of Bidar district, was linked to the local BJP unit. He is said to have been the key middleman in the KPSC scam and was the alleged mastermind behind the whole operation. 

The CID has already arrested IAS officer Gyanendra Kumar Gangwar, former Controller of Examination, KPSC, as well as Kannale, in connection with the scam. 

The CID is examining Kannale’s financial transactions and has reportedly frozen 17 bank accounts allegedly linked to him, his relatives and friends. 

The probe is also looking into allegations that a number of candidates were taken to a resort and were given question papers with answers, sources said, adding that some candidates who received high marks are reportedly related to those in high positions at the KPSC.

But his dairy farm, estimated to be worth around Rs 5 crore, is noteworthy. 

He allegedly purchased more than eight acres of fertile agricultural land near the Bhalki-Bhatambra main road, and established the 'Bhagwati Dairy Farm', reportedly built at a cost of several crores.

Sources suspect that this farm has been set up with the intention of converting allegedly illicitly acquired money into legitimate assets. However, this needs to be established through official investigation.

The farm was inaugurated on 10 December, 2025, in the presence of local legislators and prominent personalities. Murrah buffaloes were brought from neighbouring Gujarat and Maharashtra for the farm.

Currently, the dairy houses more than 25 Murrah buffaloes, one bull, two indigenous cows and more than 10 calves. The unit is said to produce over 250 litres of milk every day. The day-to-day management is handled by Kannale's father, Naganath.

Naganath, who denies knowledge of any of Kannale’s allegedly illegal activities, worked in the Social Welfare Department. Kannale himself was a Tumakuru University Syndicate member and his pictures with State BJP President BY Vijayendra and Congress Minister Eshwar Khandre have gone viral since his arrest. 

Verification of property documents and financial transactions by authorities will reveal the facts.

WHAT IS THE SCAM? 

The scam came to light after an audio clip surfaced in which alleged middlemen were heard demanding Rs 80 lakh per post from candidates. Later, a candidate filed a complaint at the Vidhana Soudha Police station, alleging paper leaks, OMR sheet tampering, leakage of candidates’ personal information and large-scale manipulation in the recruitment process. A group of veterinary doctors have also filed a complaint at the station alleging that the some candidates were illegally selected. 

The CID is probing allegations of irregularities in the recruitment examination, including the handling of examination records, OMR sheets and the role of involved officials and others. The Directorate of Enforcement (ED) is also separately investigating the case, and have raided the premises including those linked to suspended Gangwar.