Betting racket: Karnataka MLA sent to ED custody; links found to casinos in Sri Lanka, Nepal, Georgia

The ED has intensified its probe into Karnataka MLA KC Veerendra, focusing on suspected money laundering through casinos and shell companies abroad.

The Enforcement Directorate (ED) has widened its investigation into Karnataka Congress MLA KC Veerendra, popularly known as ‘Puppy’, by probing a network of suspected shell companies and casinos operating in foreign countries such as Sri Lanka, Nepal, and Georgia.

KC Veerendra was arrested by the central agency in Sikkim on Saturday (HT_PRINT)

Veerendra was arrested by the central agency in Sikkim on Saturday and was produced before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru the following day. The court has remanded him to ED custody until August 28.

The arrest follows a series of multi-state raids conducted against the legislator, his family members, and associates in connection with an alleged illegal online and offline betting racket. The ED suspects large-scale money laundering through these betting operations.

During the custody period, the ED plans to question the MLA about several shell or dummy companies that have reportedly been traced to him. Investigators believe these companies may have been used as fronts to funnel and launder illicit funds.

As per the agency, some overseas casinos, especially in Sri Lanka, Nepal, and Georgia, are also under scrutiny. Investigators claim Veerendra had managerial control over the operations of these offshore establishments, based on digital evidence recovered during raids.

Documents seized from computer systems during the searches also suggest that Veerendra was in the process of negotiating the purchase of a casino owned by Tamil Nadu-based 'lottery king' Santiago Martin, who is already under ED investigation in a separate money laundering case.

Additionally, the ED is investigating the source of funds used by Veerendra, his brother K C Nagaraj, and his son Pruthvi N Raj to acquire several SUVs with "fancy and VIP" registration numbers.

The central agency believes the MLA and his associates used casino operations to disguise cash proceeds as legitimate income, routed through credit card payments and later adjusted using funds allegedly diverted from cyber fraud activities.

(With agency inputs)