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2mo ago

Karnataka High Court Upholds ED Arrest of Congress MLA K.C. Veerendra in Betting Money-Laundering Probe

The judge said a still-pending FIR with a filed but unaccepted closure report gives the agency legal footing under PMLA.

Congress MLA KC Veerendra was arrested at Gangtok on 23 August when he was in Sikkim along with his associates on a business trip | Facebook/K. C.Veerendra Puppy
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Karnataka High Court upholds ED arrest of MLA RD Chaitra’s husband KC Veerendra in multi-crore betting and money laundering case.

Overview

  • On October 15, Justice M. I. Arun dismissed a writ by R. D. Chaitra, holding the ED’s August 23 arrest lawful under Section 19 of the PMLA and finding sufficient material to justify custodial interrogation.
  • The court accepted that one predicate case from 2022 remains alive until the ‘B’ report is judicially accepted, enabling the money-laundering investigation to proceed.
  • Veerendra was arrested in Gangtok, Sikkim, and remains in judicial custody as the ED continues a multi-state probe into alleged illegal online and offline betting operations.
  • Investigators allege he led platforms such as King567 and Raja567, routed funds via gateways including FonePaisa, used mule accounts, and moved money through shell firms and casinos in India and overseas.
  • The ED reports seizures exceeding Rs 150 crore, including about 40 kg of gold recovered on October 9, while alleging payment-gateway data point to proceeds of crime above Rs 2,000 crore that remain under probe.