ED Intensifies Crackdown on Illegal Betting Network with Major Asset Seizure
The Enforcement Directorate (ED) has escalated its action against illegal online betting operations by provisionally attaching assets worth ₹177.3 crore linked to Karnataka Congress MLA K C Veerendra, popularly known as Puppy, and his associates. This latest move brings the total value of assets seized in this high-profile case to an astonishing ₹320 crore, highlighting the scale of the alleged financial irregularities.
Details of the Provisional Attachment Order
In an official statement released on Thursday, the ED confirmed that it had issued a provisional attachment order on January 29, 2026 under the stringent provisions of the Prevention of Money Laundering Act, 2002 (PMLA). The attached properties encompass a diverse range of assets, including:
- Agricultural land parcels
- Residential sites and properties
- Various other movable and immovable holdings
These assets have been identified as proceeds derived from illegal online betting and gambling operations, according to the central investigative agency.
Expanding Scope of the Investigation
The ED's statement revealed that the investigation has uncovered proceeds of crime exceeding ₹2,300 crore, which were allegedly generated through illicit online betting activities and subsequently laundered through multiple layers of complex transactions. The agency has described Veerendra and his associates as the masterminds behind a nationwide illegal online betting network that operated using a consistent modus operandi across various platforms.
According to ED findings, unsuspecting players were lured into staking money on rigged illegal gaming websites that functioned as online casinos. Their deposits, aggregating to crores of rupees, were collected through designated payment gateways into specific payment aggregator accounts. The investigation has exposed how victims were initially shown fake winnings to build trust before being eventually blocked from making withdrawals.
Operational Mechanics of the Alleged Scheme
The ED investigation has revealed sophisticated money laundering techniques employed by the accused, including:
- Utilization of hundreds of mule accounts to obscure financial trails
- Employment of multiple payment gateways to process illicit funds
- Operation of illegal betting websites such as King567 and Raja567
- Routing of player funds through platforms like FonePaisa
The agency cited seven separate FIRs related to cheating in online betting and gambling as the foundation for the money laundering probe against Veerendra and others involved in the network.
Political Connections and Legal Proceedings
K C Veerendra, considered a close associate of Karnataka Deputy Chief Minister D K Shivakumar, was initially arrested in Gangtok, Sikkim on August 23 during a business visit. This followed extensive searches conducted by the ED at 31 locations connected to the MLA, his brothers, and various associates. After spending four months in custody, Veerendra was granted bail by a special court in Bengaluru on December 30, 2025.
The timing of these enforcement actions is particularly significant as they closely follow Parliament's passage of legislation aimed at banning online real money-based gaming activities, indicating a broader governmental crackdown on such operations.
The ED's persistent investigation continues to unravel the complex web of financial transactions and operational structures behind what appears to be one of the most substantial illegal betting networks uncovered in recent times.
