MLA KC Veerendra’s wife cited procedural flaws and weak underlying cases. However, the ED argued it has substantial evidence of a multi-state operation with proceeds exceeding Rs 2,000 crores.
Bengaluru: The Karnataka High Court has rejected a petition seeking the release of Congress legislator KC Veerendra, who was arrested in connection with a money laundering case linked to alleged illegal betting operations. The petition was filed by the MLA’s wife challenging his detention under the Prevention of Money Laundering Act. Justice MI Arun dismissed the habeas corpus petition on Wednesday, October 15. The Congress MLA was taken into custody over his purported involvement in an extensive illegal betting network operating both online and offline platforms. The Enforcement Directorate arrested him under PMLA provisions, alleging his participation in betting activities spanning several states.
According to investigating authorities, the seized properties are believed to be connected to illicit funds generated through the betting racket. The agency alleges that Veerendra played a central role in generating, concealing, and managing proceeds from criminal activities. Senior counsel Siddharth Dave, representing the MLA’s wife, argued that not one summons under Section 50 PMLA was sent to the MLA between registration of the ECIR in July till his arrest from Sikkim. He highlighted several procedural concerns regarding predicate offenses. They pointed to a 2011 case registered under Section 420 IPC for cricket betting, noting that charges under this section were not framed during trial and the accused were acquitted in 2014. A similar 2015 FIR was quashed by the High Court in 2016, the defense argued.
Dave contended that in subsequent cases registered in 2016 and 2022, the MLA was either not named as an accused or not included in the chargesheet. “None of them are in the predicate offence. After registration of the ECIR on the four FIR the activities described in grounds of arrest are completely different,” LiveLaw reported Dave as saying. The defense also noted that two FIRs referenced by the ED were closed in 2024, suggesting there were no valid grounds for arrest at that time.
ED Opposes Release
Additional Solicitor General Aravind Kamath, representing the Enforcement Directorate, maintained that the agency possessed substantial material evidence. “We already had material and the FIR’s only corroborated it. He is not just the recipient of proceeds of crime, it is our allegations that the petitioner is involved in the process of generation, concealment and other elements as mentioned under Section 3 the PMLA, in respect of proceeds of crime,” LiveLaw reported Kamath as saying.
The prosecution revealed that preliminary investigations, including analysis of publicly available information and social media activity, suggested the accused operated casinos in multiple countries including India, Nepal, Sri Lanka, and Georgia. The investigation also uncovered online betting platforms operating under names like King567 and similar brands within the 567 Gaming universe. Kamath argued that the appropriate legal remedy would be to challenge the remand order rather than claim illegal detention. He stressed that the agency’s case was built on months of evidence gathering, not mere assumptions based on wealth.
According to the ED, transaction records from a single payment gateway alone indicate proceeds of crime exceeding Rs 2,000 crores since 2021. The agency believes further investigation will reveal additional illicit funds. The prosecution also emphasized that money laundering constitutes an independent offense under PMLA and can be prosecuted separately from the underlying predicate offense that generated the illegal proceeds.