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Additional Director General of Police Amrit Paul was heading the recruitment division when the scam took place.
After the large-scale irregularities came to light, the senior IPS officer was transferred to the post of the ADGP, Internal Security Division.
According to top sources, the Optical Mark Recognition (OMR) sheets of the fraudulent candidates allegedly tampered in the recruitment division itself.
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The scam had first come to light in Kalaburagi district and a BJP leader, the gunman of a Congress MLA, and a few police officers including a deputy superintendent of police, inspector, sub-inspector, and constables were also arrested.
It is also alleged that a candidate from Malleshwaram, purportedly the relative of a senior politician, was also arrested in this case.
About 70 people have been arrested so far in this connection, sources said.
The PSI recruitment drive started in October 2021 to fill 545 posts.