ED Attaches Rs 23.35 Crore Assets in Karnataka MLA KC Veerendra-Linked Online Betting Racket

New Delhi [India], The Enforcement Directorate (ED) on Tuesday announced it has attached movable and immovable properties valued at Rs 23.35 crore in connection with an alleged online betting racket case linked to Karnataka MLA KC Veerendra and others.

What Happened

The ED’s Bengaluru zonal office attached movable properties worth Rs 13,76,96,706 and immovable properties valued at Rs 9,58,50,000, totaling Rs 23,35,46,706. This action was taken under the Prevention of Money Laundering Act (PMLA), 2002. The investigation was initiated based on multiple First Information Reports (FIRs) alleging cheating, cheating by personation, criminal conspiracy, and extortion through online betting and gambling platforms.

Key Details

• The attached assets include both movable and immovable properties, collectively valued at Rs 23,35,46,706.
• The attachment follows a Provisional Attachment Order (PAO) issued on October 23.
• Those whose assets were attached include Veerendra, Neha Tandon (Director of SimTech IT Solutions Private Limited), and her husband Gulshan Khattar.
• The ED’s investigation uncovered a “nationwide network of betting websites, payment gateways, shell companies and mule accounts allegedly controlled by Veerendra and his associates.”
• These entities were reportedly used for generating and laundering ‘Proceeds of Crime’ (PoC).
• The illicit online betting platforms, including ‘King567’, allegedly induced players to deposit funds and subsequently cheated them through manipulated betting operations and blocked withdrawals.
• The ED has traced proceeds of crime exceeding Rs 2,300 crore, which were layered through multiple accounts, hawala channels, and offshore entities.
• These funds were reportedly utilized for acquiring luxury assets, business investments, foreign remittances, and personal expenses.
• Fonepaisa Payment Solutions Private Limited, beneficially owned by Gulshan Khattar, was found to have received significant commission for its role as a key payment gateway and financial intermediary in the illegal betting ecosystem.
• Assets worth approximately Rs 33 crore were previously attached on January 29, 2026, in connection with the PoC received by Fonepaisa.

Why It Matters

This attachment underscores the ongoing efforts by the ED to crack down on illegal online betting and money laundering operations in India. The involvement of a sitting MLA, KC Veerendra, highlights the sophisticated nature and potential political connections of such illicit rackets. The scale of the traced proceeds of crime, exceeding Rs 2,300 crore, indicates a massive financial fraud impacting numerous individuals. The use of complex financial structures, including shell companies and hawala channels, demonstrates the lengths to which perpetrators go to conceal their illegal activities. This case serves as a significant example of how law enforcement agencies are utilizing PMLA to target and seize assets derived from criminal enterprises, aiming to disrupt the financial infrastructure supporting such illicit operations.