The Lokayukta stated that the two accused were involved in a criminal conspiracy, and that the extortion proceeds were invested in cryptocurrencies by the accused in an attempt to launder the illicit gains.
Published Jul 04, 2025 | 8:00 AM ⚊ Updated Jul 04, 2025 | 12:29 PM
Karnataka Lokayukta
Synopsis: The Karnataka Lokayukta has initiated criminal proceedings against two men, including an IPS officer, accused of using its name to extort at least ₹4.92 crore from government officials and laundering the proceeds through cryptocurrency. The anti-corruption body, however, refrained from addressing reports that both accused previously held posts within the Lokayukta, stating only that its name was misused.
The Karnataka Lokayukta has issued a detailed statement confirming the initiation of criminal proceedings against two individuals accused of using the anti-corruption body’s name to extort money from government officials.
“It came to the attention of the Honourable Lokayukta, through a confidential tip-off, that a few individuals were misusing the name of the Karnataka Lokayukta organisation to extort money,” the body said in a press statement issued on 2 July.
A case under Section 7A of the Prevention of Corruption Act, 1988 (Case No. 28/2025) was subsequently and voluntarily registered at the Bengaluru City Lokayukta Police Station.
“During the investigation, one Ningappa G alias Nigappa Savant was found to be in communication with the Excise Department and other government offices within the BBMP limits through WhatsApp calls, claiming that he was connected with Lokayukta officials,” the statement said.
“It has come to light that he sought to establish close contact with officials, subsequently requesting money and engaging in extortion by such means.”
Ningappa reportedly made frequent visits to the Lokayukta office in Bengaluru, and his WhatsApp messages show sustained communication with Joshi Srinath Mahadeva IPS, who the Lokayukta merely identified as “former Commissioner of Bengaluru City Police Division.”
The press statement further said that Ningappa “sent threatening messages to government officials, alleging they possessed irregular assets, and demanded bribes using the code word ‘kg’.”
Notably, earlier reports suggested that the two accused had served within the Lokayukta at various points, with Ningappa described as a ‘former constable’ and Mahadeva reportedly holding the post of Lokayukta SP until at least the first week of June, before being “moved out.”
Yet, the Lokayukta has not addressed these claims directly. Instead, it states only that its name was being misused for extortion.
The Lokayukta stated that the two accused were involved in a criminal conspiracy, and that the extortion proceeds were invested in cryptocurrencies by Ningappa in an attempt to launder the illicit gains.
“His mobile phone was found to contain up to 24 cryptocurrency wallets, of which 13 had an estimated value of ₹4.92 crores, based on initial findings,” the press note stated.
It further said that Mahadeva remained in contact with the accused during the course of the investigation.
“As a result, on 15 June 2025, a search warrant was obtained from the court and a search was conducted at Mahadeva’s residence. On the same day, a notice was issued under Section 35(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), summoning his presence for inquiry.”
Subsequently, both accused sought relief from the Karnataka High Court, which granted a temporary stay on the notice served to Mahadeva under Writ Petition No. 17564/2025. Similarly, Ningappa’s Writ Petition No. 8135/2025 received an interim stay on the ongoing investigation.
The Lokayukta further said, “it is apparent from preliminary investigations that Joshi Srinath Mahadeva IPS, former Commissioner of Bengaluru City Police Division, maintained direct and continued contact with the accused and was involved in illegal extortion of money. This conduct constitutes a violation of the All India Services (Conduct) Rules, 1968.”
A formal letter has been sent to the Chief Secretary of the Government of Karnataka requesting appropriate disciplinary action under the said rules.
(Edited by Dese Gowda)
