Karnataka MLA KC Veerendra, aka Puppy, was arrested by the ED for running a ₹2000 crore online betting scam. Five luxury cars were seized, and multiple bank accounts, properties, and Dubai-based companies linked to the MLA were investigated.
Bengaluru: The Enforcement Directorate (ED) has made explosive allegations against Chitradurga Congress MLA KC Veerendra, also known as Puppy, who was arrested for operating illegal online betting apps. In a statement released on Wednesday, the ED claimed that Veerendra amassed a staggering ₹2000 crore in a short period through these apps.
Alleged Use Of Fintech Companies And Hawala Channels
The ED alleges that Veerendra, the prime accused in the online betting scam, and his associates in Dubai used multiple payment gateways and fintech service companies to portray their ill-gotten gains as legitimate income from e-commerce businesses. The investigation also revealed the use of hawala channels for transferring money.
Luxury Cars And Assets Seized
During raids on Veerendra’s residences in Bengaluru and Challakere, Chitradurga district, on Tuesday, the ED seized five luxury Mercedes-Benz cars, all bearing the VIP number ‘0003’.
Cash, Bank Accounts, And Demat Accounts Frozen
The ED stated that a total of ₹55 crore has been seized, including ₹40.69 crore from nine bank accounts and a demat account belonging to Veerendra, following an earlier seizure of ₹12 crore in cash. An additional ₹14.46 crore was seized from 262 bank accounts used to store illegally earned money, specifically routed through a payment gateway operated by Veerendra and his associates.
Illegal Online Betting Operations
Veerendra allegedly ran online betting websites like King567, Raja567, and Lion567. The money earned from these sites was transferred through payment gateways. The ED revealed that approximately ₹2000 crore was moved through a single gateway in a short span via these websites.
Dubai-Based Companies Linked To Veerendra
Veerendra’s brother, KC Thippeswamy, reportedly ran three Dubai-based companies – Diamond Softtech, TRS Technologies, and Prime9 Technologies – linked to Veerendra’s call center and gaming operations. The ED suspects that Veerendra also established companies like Castle Rock Project Management Services and Lascocks Course Project Management Services in Dubai with Thippeswamy, his relative Prithvi N Raj, and associate Anil Gowda, the brother of Kusuma H., a 2023 assembly election contestant from Rajarajeshwari Nagar.
Arrest And Previous Raids
On August 22, the ED conducted raids at 31 locations across Karnataka and other states, including Chitradurga, Challakere, Bengaluru, Hubballi, Jodhpur, Mumbai, and Goa, targeting Veerendra, his brothers, and business partners. The raids resulted in the seizure of approximately ₹12 crore in cash, gold jewelry worth around ₹6 crore, 10 kg of silver, foreign currency worth ₹1 crore, and four vehicles. Documents relating to properties of Veerendra’s brother KC Nagaraj and his son Prithvi N. Raj were also seized, along with 17 bank accounts and two lockers belonging to Veerendra, which were frozen. Veerendra was arrested in Gangtok, Sikkim, on August 23 on charges of money laundering and brought to Bengaluru.