The Enforcement Directorate (ED) has seized 40 kilograms of 24-carat gold bullion worth Rs 50.33 crore from two lockers in Challakere, Karnataka, during search operations conducted on October 9 in connection with an illegal online betting case involving Karnataka MLA KC Veerendra.
The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, by the ED’s Bengaluru Zonal Office.
The agency said the latest seizure brings the total value of assets recovered in the case to over Rs 150 crore, which includes previously seized 21 kg of gold bars, cash, gold and silver jewellery, bank accounts, and high-end vehicles.
According to the ED, Veerendra and his associates operated multiple illegal online betting platforms, including King567 and Raja567, through which they allegedly cheated users across India.
The funds collected from players were routed through payment gateways like FonePaisa and further laundered using mule accounts sourced from intermediaries nationwide.
Investigators have uncovered links between these betting operations and isolated instances of cybercrime, where mule accounts were created in the names of individuals in exchange for small sums.
The estimated turnover of these betting platforms controlled by Veerendra is said to exceed Rs 2,000 crore.
The ED also found that Veerendra, his family members, and associates financed international travel, visa arrangements, and hospitality services worth crores of rupees using proceeds from the online betting network. Expenses related to marketing, bulk SMS services, and digital promotion were also paid through these mule accounts to conceal the illicit source of funds.
The agency said the searches were conducted even as the prime accused, KC Veerendra, remains in judicial custody, as part of ongoing efforts to trace the proceeds of crime generated through illegal online betting activities.
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