Illegal betting scam: ED raids multiple locations in Cong MLA’s native town in Karnataka
Bengaluru: The Enforcement Directorate (ED) is conducting raids on multiple locations on Saturday in connection with an illegal betting scam in Challakere town of Chitradurga district involving Karnataka Congress MLA K.C. Veerendra aka Pappi.
The raids are being conducted on the basis of information provided by MLA Veerendra, who has been arrested by the ED.
Sources stated that the raids are being conducted on units of a cooperative bank and a private nationalised bank in Challakere town.
The investigation into the illegal betting scam by the ED has revealed that Karnataka Congress MLA K. C. Veerendra and his associates collected over Rs 2,000 crore through a single gateway from websites in a short span.
Earlier on September 2, the ED’s Zonal Office carried out search operations at multiple premises in Bengaluru and Challekere under the provisions of PMLA, 2002, in the case of Congress MLA K. C. Veerendra and others related to cheating the public in illegal online betting.
Searches were carried out across 31 premises in Challekere, Bengaluru, Panaji, Gangtok, Jodhpur, Hubli and Mumbai, ED stated.
The ED stated, “During the searches, five high-end vehicles, including Mercedes-Benz with VIP numbers 0003, KA 50 MB 0003, KA 09 ML 0003, KA 53 MD 0003, KA 53 MH 0003, KA 16 P 0003 and one Mercedes-Benz with VIP number 5267 KA 02 MU 5267 were seized.”
Further, an amount of Rs 55 crore was marked freeze, including Rs 40.69 crore in nine bank accounts and one Demat account of MLA Veerendra and a total amount of Rs 14.46 crore in 262 mule accounts recovered from one of the accused gateways through which money collected by multiple gaming websites being operated by Veerendra and his associates were being routed, according to the ED.
Further investigation has revealed that the accused is running several online betting sites in the name of King567, Raja567, Lion567, etc, according to ED.
It has also been revealed that several gateways have been used for routing payments collected through these websites, the ED said.
The money collected from these websites, being operated by Veerendra and his associates through a single gateway alone, is more than Rs 2,000 crore in a short span of time, the ED stated.