ED seizures in online betting case against Congress MLA K C Veerendra 'Puppy' cross Rs 150 crore

Bengaluru: The Enforcement Directorate (ED) has seized assets worth over Rs 150 crore in connection with an illegal online betting case against Congress MLA K C Veerendra (Puppy). 

The ED’s Bengaluru Zonal Office carried out search operations on Thursday under the Prevention of Money Laundering Act (PMLA), 2002. 

On Thursday, ED officials seized 40 kg of 24-carat gold bullion worth Rs 50.33 crore from two separate lockers in Challakere. With this latest action, the total seizure in the case has topped Rs 150 crore. 

Prior to this, the ED had attached or seized assets worth Rs 103 crore, which included around 21 kg of gold bars, cash, jewellery, high-end vehicles and bank balances. 

The search operations were carried out even as the sitting MLA remains in judicial custody. 

According to the ED, its investigation revealed that Puppy, along with his family members and associates, “masterminded” the operation of several illegal online betting websites, notably King567 and Raja567. These platforms were reportedly used to “cheat” innocent players, it added. 

Investigators found that the estimated illegal turnover generated by the betting applications under Veerendra’s control exceeded Rs 2,000 crore. 

The central agency traced a “sophisticated money-laundering mechanism”.

Funds collected from players were routed through various payment gateways, including FonePaisa, before being channelled through a large network of ‘mule accounts’.

These accounts were sourced by intermediaries from across India, revealing a nexus between online betting racket and isolated instances of cybercrime across the country. 

Further investigation exposed the lavish expenses financed through the proceeds of crime.

The funds were allegedly diverted through the mule accounts to pay for high-value transactions, including international travel tickets, visa fees and hospitality services worth crores of rupees for Puppy, his family and associates. Operational costs such as marketing, bulk SMS services, platform hosting and search engine optimization were masked and paid using these intermediary accounts, all controlled by the MLA and his inner circle, the ED said.