Overview

• Justice M.I. Arun on October 15 dismissed a writ by R.D. Chaitra challenging Veerendra’s August 23 arrest, finding sufficient reason to believe under Section 19 of the PMLA.
• The court noted a 2022 predicate FIR remains pending despite a filed but unaccepted ‘B’ report, and held that proceeds of crime need not be capped by the amount cited in that complaint.
• Investigators allege Veerendra ran a transnational illegal betting operation using platforms such as King567 and Raja567, routing funds via gateways including FonePaisa and mule accounts with links to casinos in India, Nepal, Sri Lanka, and Georgia.
• The ED conducted August 22–23 searches at 31 locations and arrested Veerendra in Gangtok; total recoveries now exceed Rs 150 crore, including 40 kg of 24-carat gold bullion seized on October 9, cash, jewellery, vehicles, and frozen accounts.
• The agency estimates proceeds from the alleged network exceed Rs 2,000 crore based on a single payment gateway’s data, while the court said Veerendra may seek bail and later pursue quashing if the closure report is judicially accepted.