BENGALURU – The Principal City Civil and Sessions Court in Bengaluru has dismissed an anticipatory bail application filed by Manjunath Melkundi, a high-profile accused in the 545 Police Sub-Inspector (PSI) recruitment scam. Melkundi, an assistant engineer in the irrigation department, sought protection from arrest by the Enforcement Directorate (ED) in connection with a money laundering probe (ECIR/BZGO/68/2022). The order was passed by Principal City Civil and Sessions Judge Shri Muralidhara Pai B. on June 15, 2024.
Background of the PSI Recruitment Scandal
The PSI recruitment scam, which broke out in 2022, involves large-scale corruption and malpractice during the examinations conducted to fill 545 sub-inspector posts in Karnataka. Initially, the Kalaburagi Chowk Police and High Grounds Police registered FIRs (Crime No. 48/2022 and 60/2022) against several individuals for offenses including criminal conspiracy, forgery, and cheating.
Following the police investigation, which led to a detailed charge sheet, the Enforcement Directorate stepped in to investigate the financial trails. The ED registered an Enforcement Case Information Report (ECIR) on August 4, 2022, under the Prevention of Money Laundering Act (PMLA). Manjunath Melkundi is Accused No. 24 in the predicate offense. The central agency alleges that Melkundi, along with associates, opened multiple bank accounts in the names of candidates and associates to funnel bribe money into mutual funds and the stock market.
Manjunath Melkundi’s Arguments for Bail
Represented by Advocate Jeevan J., Melkundi argued that he was being unfairly targeted by the prosecution. He pointed out that while there are dozens of accused in the primary case, the ED had focused its search and document seizure on only a few individuals, including himself.
The petitioner further contended that he had already been granted bail in the predicate offense by a Kalaburagi court and was strictly following those conditions. He argued that his presence was required for the trial of the original criminal case and expressed apprehension that the ED might arrest him to prevent him from defending himself in the Kalaburagi proceedings. Melkundi’s defense also stated that there was no prima facie evidence to link him to money laundering under Section 3 of the PMLA.
Prosecution Highlights Evasion of Summons
Special Public Prosecutor Sri I.S. Pramod Chandra, representing the Enforcement Directorate, strongly opposed the petition. The prosecution presented evidence that Melkundi had repeatedly evaded summons issued under Section 50 of the PMLA. The ED had summoned him to appear for inquiry on March 20 and March 28, 2024, but the petitioner failed to show up.
Melkundi had claimed that he could not travel to Bengaluru because his bail conditions in Kalaburagi restricted him from leaving that district. However, the prosecution demonstrated that Melkundi never even applied to the Kalaburagi court for the necessary permission to attend the ED inquiry, suggesting that he was using the bail conditions as a “shield” to avoid the investigation.
Court Dismisses the Petition
Judge Muralidhara Pai B. found Melkundi’s conduct to be uncooperative. The court noted that the petitioner had made no effort to seek permission from the jurisdictional court in Kalaburagi to appear before the ED, despite claiming he would do so. Records showed that on the very day he was supposed to be in court (April 2, 2024), he was absent and had filed no such application.
The court held that the offenses alleged—corrupt practices in a public recruitment process and the subsequent laundering of those proceeds—are serious and warrant thorough investigation. The Judge observed that the apprehension of arrest by the petitioner was not based on any valid legal threat but was an attempt to stall the inquiry.
“The conduct and the contentions of the Petitioner go to show that he has deliberately avoided to appear before the Respondent without justifiable cause and thereby he has failed to cooperate with the investigation,” the Judge stated in the final order, dismissing the petition for anticipatory bail.
PSI Scam Karnataka: CID grills Manjunath Melkundi
This video provides additional context on the early stages of the investigation and the specific allegations of evidence destruction that were leveled against the accused during the CID probe.