Bengaluru, Oct. 11, 2025 — The Enforcement Directorate (ED) has seized 40 kilograms of gold valued at over ₹50 crore from two bank lockers linked to a Karnataka Congress MLA, as part of its ongoing investigation into a major online betting racket.
According to ED officials, the Bengaluru Regional Office conducted the search operations under the Prevention of Money Laundering Act (PMLA), 2002. With this latest seizure, the total value of assets recovered in the case has now exceeded ₹150 crore, including 21 kilograms of gold bars, cash, luxury vehicles, jewellery, and frozen bank accounts.
The MLA, K.C. Veerendra, representing the Chitradurga constituency, was arrested in August this year and has remained in judicial custody since. ED investigations have revealed that Veerendra and his associates were allegedly operating a massive ₹2,000-crore online betting network through multiple digital platforms, including “King 567” and “Raja 567.”
In a statement, the ED said Veerendra, along with his friends and family members, ran several illegal online betting websites, defrauding thousands of unsuspecting users. The proceeds of these illegal activities were allegedly funneled through numerous payment gateways — including PhonePe — and routed via thousands of “mule” accounts managed by intermediaries across India.
The investigation further found that funds generated through these betting operations were used to finance lavish overseas travel, visa arrangements, and hospitality expenses. Payments for marketing campaigns, search engine optimization, bulk SMS promotions, and platform hosting services were also traced back to accounts connected to the betting syndicate.
“The evidence indicates that funds obtained from illegal online activities were transferred through multiple intermediary accounts to disguise their origins,” the ED stated.
Officials added that the agency is continuing efforts to trace the money trail, identify additional assets, and determine the full extent of the proceeds of crime linked to Veerendra and his associates.
The revelations mark a major breakthrough in what investigators describe as one of the largest online betting and money-laundering rackets uncovered in southern India.
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