ED Seizes 40 Kg Gold Worth Rs 50 Crore From Karnataka Congress MLA’s Lockers in Massive Online Betting Investigation

In a dramatic escalation of the ongoing probe into an illegal online betting racket, the Enforcement Directorate (ED) has confiscated 40 kilograms of 24-carat gold bullion—valued at over Rs 50 crore—from two lockers linked to KC Veerendra, a Congress MLA representing Karnataka’s Chitradurga constituency. The seizure follows multiple coordinated raids in Bengaluru under the Prevention of Money Laundering Act (PMLA) and raises the total value of assets recovered in the investigation to over Rs 150 crore.​

MLA, Family, and Associates Allegedly Ran Rs 2,000 Crore Betting Network

KC Veerendra, already in judicial custody since August, is accused of masterminding a sprawling Rs 2,000 crore betting operation, managed through platforms such as King567 and Raja567. According to ED officials, Veerendra—along with close friends and relatives—operated several illegal betting websites that swindled unsuspecting gamblers nationwide. The agency’s investigation has traced the collection and routing of betting proceeds through multiple digital gateways, including FonePaisa, and a network of thousands of ‘mule’ accounts set up by intermediaries across India to obscure money trails.​

Luxury, Laundering, and Digital Deception

ED’s statement reveals that incomes from the betting network were diverted for luxury travel, visa arrangements, and hospitality services abroad for Veerendra and his associates. Additionally, substantial portions of the proceeds financed marketing, search engine optimization, bulk SMS campaigns, and digital platform hosting, all billed through accounts tied to the illegal network.​

Layered Money Laundering Channels

The agency identified a sophisticated web of intermediary accounts designed to conceal the origin of illicit funds. All seized assets—ranging from gold bars and jewellery to cash, luxury vehicles, and frozen bank accounts—are part of an extensive investigation into the sources and ultimate beneficiaries of the betting-funded money laundering activities.​

Ongoing Probe Into Crime Proceeds

The ED remains focused on unmasking the full scope of criminal proceeds and criminal assets associated with Veerendra and his extended network. Further tracing of money trails and identification of additional properties is underway, as the agency intensifies its efforts to clamp down on digital betting crime and financial fraud across India.