New Delhi [India], October 27 (ANI): The Enforcement Directorate (ED) on Tuesday said it has attached Rs 23.25 crore movable and immovable properties in connection with Karnataka MLA KC Veerendra-linked alleged online betting racket case.
ED's Bengaluru zonal office attached movable properties, totally valued at Rs 13,76,96,706 and immovable properties valued at Rs 9,58,50,000 totalling Rs 23,35,46,706 under the Prevention of Money Laundering Act (PMLA), 2002, in the case of Veerendra and others.
ED said its investigation was initiated on the basis of multiple First Information Reports (FIRs) alleging cheating, cheating by personation, criminal conspiracy and extortion through online betting and gambling platforms.
As per the agency, its investigation revealed a "nationwide network of betting websites, payment gateways, shell companies and mule accounts allegedly controlled by Veerendra and his associates for generating and laundering Proceeds of Crime."
"The suspected proceeds derived from the scheduled offences were allegedly layered through complex financial transactions and utilised for acquisition of assets and personal enrichment, leading to registration of Enforcement Case Information Report (ECIR) and commencement of investigation under the provisions of the PMLA," said the ED in a statement.
The attachment has been following a Provisional Attachment Order (PAO) issued on October 23, representing the equivalent value of Proceeds of Crime, found in the possession of Veerendra, Neha Tandon, Director of SimTech IT Solutions Private Limited, and her husband Gulshan Khattar.
The investigation carried out by this Directorate, has revealed that Veerendra and his associates operated illegal online betting platforms, including King567, through a network of payment gateways, shell companies and mule accounts, whereby players were induced to deposit funds and subsequently cheated through manipulated betting operations and blocked withdrawals.
ED said its investigation traced proceeds of crime exceeding Rs 2,300 crore, which were layered through multiple accounts, hawala channels and offshore entities, and utilized for acquisition of luxury assets, business investments, foreign remittances and personal expenses, thereby establishing the accused’s involvement in concealment, possession, use and projection of proceeds of crime as untainted property, constituting the offence of money laundering under Section 3 of the PMLA.
In the instant case, the federal agency mentioned that Proceeds of Crime were found to be received, in the hands of Fonepaisa Payment Solutions Private Limited, beneficially owned by Gulshan Khattar, who had received huge amount of commission for providing services as a key payment gateway and financial intermediary in the illegal online betting ecosystem.
Out of the PoC so received, assets worth approximately Rs 33 crore were attached on January 29, 2026.
During the course of the investigation, it said SimTech was found to have received credits from identified mule bank accounts linked to king567.
The agency said Neha Tandon had no active role in its management and the same was handled by her husband, Gulshan Khattar.
"The receipt of tainted funds by SimTech, coupled with Khattar's control over the entity and his role in the generation and movement of PoC through Fonepaisa, forms basis that properties held by or in the name of Neha Tandon constitute or represent Proceeds of Crime."
Earlier, in the case, ED had conducted extensive search and seizure operations across more than 60 premises in several states under Section 17 of PMLA, during which large quantities of cash, gold bullion, gold and silver jewellery, balances lying in mule accounts, vehicles, digital devices and incriminating documents were seized and frozen.
ED had also arrested Veerendra under Section 19 of PMLA.
Investigation in under PMLA resulted in filing of a Prosecution Complaint dated October 18, 2025 and a Supplementary Prosecution Complaint dated February 20, 2026, pursuant to which cognizance was taken by a special PMLA court, on May 4, 2026.
In continuation of the seizure and freezing of movable and immovable assets, earlier, ED had attached properties worth Rs 177.30 crore, which was subsequently confirmed by the Adjudicating Authority, PMLA, New Delhi.
As per the agency, the aggregate value of properties attached, seized and frozen in the case till date exceeds Rs 343 crore under provisions of the PMLA, 2002.
ED said the instant provisional attachment has been made to safeguard the value of the Proceeds of Crime, in accordance with the provisions of PMLA, 2002. (ANI)
ED attaches Rs 23.35 crore assets in Karnataka MLA KC Veerendra-linked online betting racket case
