The Karnataka High Court (HC) has rejected the petition seeking Congress MLA K.C. Veerendra’s release from the Enforcement Directorate’s (ED) custody in connection with an ongoing probe into an alleged online betting and money laundering racket.
Justice M.I. Arun heard the case, which challenged Veerendra’s arrest under Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA). The petitioner, Veerendra’s wife, argued that the arrest, made on August 23, in Gangtok, was “without jurisdiction, arbitrary, violative” of Articles 19 and 21 of the Constitution.
However, Justice Arun found that the ED had sufficient material to justify the arrest. Furthermore, the court observed that “the preliminary investigation reveals involvement of the husband of the petitioner in running the alleged illegal betting apps and being benefited through them, which requires a detailed investigation”.
The judge further remarked that the material on record disclosed “cheating people through betting apps and realising proceeds of crime through it”, concluding that custodial interrogation was necessary.
Consequently, the court stated: “There exists a predicate scheduled offence as contemplated under the PMLA, 2002, and there is sufficient material in possession of the respondent which gives reason to believe that the husband of the petitioner is guilty of an offence punishable under the PMLA”.
Accordingly, the HC dismissed the plea, affirming that the arrest was lawful and that Veerendra’s alleged role in operating online betting platforms such as King567 and India24bet warrants continued investigation under money laundering provisions.
What Was The Case?
The ED first took action against the MLA on August 22 and 23, conducting simultaneous searches at 31 locations across India, ranging from Bengaluru and Chitradurga in Karnataka to Goa, Mumbai, and Jodhpur. This operation targeted alleged illegal betting networks linked to Veerendra, who is an MLA from Chitradurga.
Furthermore, the ED accused him of running online betting schemes via platforms such as King567, and of using corporate entities in Dubai (operated by his brother) as conduits for gaming and call-centre operations.
During that raid, the agency also seized about Rs 12 crore in cash, gold jewellery worth Rs 6 crore, 10 kg of silver, four vehicles, froze 17 bank accounts and two lockers, and confiscated property documents from relatives. Importantly, the ED arrested Veerendra on August 23 in Gangtok and sent him into transit remand.
Next, on October 9, 2025, the ED staged further search operations under PMLA. In this round, agents retrieved around 40 kg of 24-carat gold bullion, valued at approximately Rs 50.33 crore, from two lockers in Karnataka’s Challekere.
Importantly, ED emphasised that prior seizures had already amounted to about Rs 103 crore in assets (gold bars, cash, bank accounts, jewellery, vehicles). And with the…
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