BENGALURU: Enforcement Directorate (ED) has seized assets worth over Rs 150 crore from a sitting state legislator, K C Veerendra of the Congress party in Karnataka, known by his nickname, ‘Puppy.’ The seizures are linked to a wide-ranging probe into an illegal online betting and money laundering operation that authorities allege generated an illegal turnover of more than Rs 2,000 crore.
A Record Seizure of Bullion and Cash
The investigation, carried out by the ED’s Bengaluru Zonal Office under the Prevention of Money Laundering Act (PMLA), has accumulated massive seizures over several months. The total value of assets seized or attached has now surpassed the Rs 150 crore mark.
In the most recent action, federal agents seized 40 kilograms of 24-carat gold bullion, valued at approximately Rs 50.33 crore, from two separate bank lockers in the Challakere town. This followed earlier seizures totaling Rs 103 crore, which included about 21 kilograms of gold bars, cash reserves, expensive jewelry, high-end luxury vehicles, and significant bank balances.
The Alleged Betting Empire
According to the ED’s findings, Mr. Veerendra, along with his family members and close associates, is the alleged “mastermind” behind several illegal online betting platforms. The most notable of these websites were King567 and Raja567. Authorities allege that these platforms were not only used for illegal gambling but were primarily designed to “cheat” players who participated.
The scale of the operation was vast. Investigators estimate that the illegal betting applications under the legislator’s control generated an overall turnover exceeding Rs 2,000 crore.
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Tracing the Complex Trail of Dirty Money
To manage and conceal this enormous illegal fortune, the central agency uncovered what they described as a “sophisticated money-laundering mechanism.” Funds collected from the players were not kept in simple bank accounts but were routed through a maze of payment gateways, including one named FonePaisa.
Crucially, the money was then funneled through a vast network of ‘mule accounts.’ These accounts were sourced by intermediaries from across the country, indicating a nationwide nexus between the betting racket and isolated instances of cybercrime used to obtain the accounts. This complex layering of transactions was designed to break the trail of the illegal money, making it difficult for investigators to connect the funds back to the legislator.
Financing a Lavish Lifestyle and Operations
The investigation revealed that the illegal profits were used to pay for both an extravagant personal lifestyle and the operational costs of the betting ring. The funds diverted through the mule accounts financed high-value international transactions for Mr. Veerendra, his family, and his associates. This included the purchase of international travel tickets, visa fees, and hospitality services, totaling crores of rupees.
Furthermore, the illegal proceeds were used to pay for the operational necessities of the betting websites, such as marketing, bulk SMS services, platform hosting, and search engine optimization. These business-related costs were allegedly masked and paid for using the same intermediary accounts, all of which the ED claims were controlled by the Congress MLA and his inner circle.
