Senior IPS Officer Seeks Bail in Karnataka’s Multi-Crore Lokayukta Extortion Scam Involving Cryptocurrency

Parijat Tripathi
Karnataka Police

The Karnataka Lokayukta police unit has been rocked by a major extortion scandal involving senior IPS officer Joshi Srinath Mahadev, who has now sought anticipatory bail from a Bengaluru court. The 2012-batch officer, who was serving as Superintendent of Police (Lokayukta, Bengaluru City-1 Division) until his abrupt transfer on June 12, is under investigation for alleged links to a sprawling extortion racket.

How the Scam Unfolded

The case came to light after the arrest of dismissed police constable Ningappa Savant (45) on June 2. Savant allegedly extorted over ₹4.15 crore from government officials—particularly in the transport and excise departments—by impersonating Lokayukta officials and threatening raids. Investigators say he used WhatsApp to bolster his credibility, displaying photos of senior Lokayukta figures, including retired High Court Judge B.S. Patil, to intimidate victims.

Cryptocurrency Trail and IPS Officer’s Alleged Role

Savant reportedly funneled his illicit gains into cryptocurrency, spreading them across 13 digital wallets—some of which, he claimed during interrogation, belonged to IPS officer Mahadev. Police have since frozen these assets for further investigation.

Savant’s elaborate scheme involved fake SIM cards, manipulated WhatsApp profiles, and fabricated contact lists. In one instance, he allegedly used the photo of SP K. Vamshi Krishna (2009-batch IPS) to extort money from a Tumkur RTO officer.

Legal Maneuvers and Institutional Fallout

Mahadev, summoned for questioning, sought a delay citing personal commitments. Meanwhile, the Karnataka High Court has temporarily stayed the FIR against Savant following a petition from his lawyers.

This scandal revives troubling memories of past controversies surrounding the Lokayukta. The agency was reinstated as Karnataka’s primary anti-corruption body in 2022 after the High Court scrapped the ineffective Anti-Corruption Bureau (ACB)—ironically, the ACB itself was formed in 2016 amid another Lokayukta scandal involving then-Justice Bhaskar Rao’s son.

Wider Implications

With at least 35 similar extortion cases reported statewide, investigators are scrutinizing call records, WhatsApp chats, and seized devices to determine the extent of Mahadev’s involvement and possible collusion within the system. The case deals a severe blow to public trust in Karnataka’s anti-corruption efforts, raising urgent questions about accountability in the state’s policing apparatus.

As the probe continues, the scandal underscores the challenges of combating corruption—even within institutions designed to fight it.

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