Online Betting Scam: ED Attaches Rs 23.35 Crore Assets Linked to Karnataka MLA KC Veerendra
The Enforcement Directorate has attached assets worth Rs 23.35 crore linked to Karnataka MLA KC Veerendra in a massive online betting racket probe.
The Enforcement Directorate (ED) has intensified its crackdown on a massive illegal gambling operation, attaching assets worth Rs 23.35 crore linked to Karnataka MLA KC Veerendra and his associates. This action comes as part of a wider investigation into a sophisticated online betting racket that allegedly cheated users on a nationwide scale.
Breakdown of the Seized Assets
According to the ED's Bengaluru zonal office, the attachment was carried out under the Prevention of Money Laundering Act (PMLA), 2002. The seized properties are split between movable and immovable assets:
- Movable Properties: Valued at approximately Rs 13.76 crore.
- Immovable Properties: Valued at approximately Rs 9.58 crore.
The total value of the attached assets stands at Rs 23,35,46,706, following a Provisional Attachment Order (PAO) issued on October 23.
A Nationwide Network of Deception
The investigation began following multiple First Information Reports (FIRs) that alleged criminal conspiracy, extortion, cheating, and personation. The ED uncovered a complex web designed to generate and launder "Proceeds of Crime."
The agency revealed that KC Veerendra and his associates allegedly controlled a vast infrastructure consisting of:
- Illegal betting websites, including the platform King567.
- Strategic payment gateways and shell companies.
- A network of "mule accounts" used to move tainted money.
The ED claims that players were lured into depositing funds into these platforms, only to be cheated through manipulated betting outcomes and blocked withdrawals.
The Money Trail: Rs 2,300 Crore Under Scrutiny
The scale of the operation is staggering. The ED has traced proceeds of crime exceeding Rs 2,300 crore. These funds were allegedly layered through hawala channels, offshore entities, and multiple bank accounts to hide their origin.
The laundered money was reportedly used for:
- Acquisition of luxury assets.
- Personal enrichment and expenses.
- Foreign remittances and business investments.
Key Players and Collaborators
The investigation has pointed toward several key individuals and entities that facilitated the racket:
Gulshan Khattar and Fonepaisa
The ED identified Fonepaisa Payment Solutions Private Limited as a critical financial intermediary. The company, beneficially owned by Gulshan Khattar, allegedly received massive commissions for providing payment gateway services to the illegal betting ecosystem. Earlier, on January 29, 2026, assets worth approximately Rs 33 crore were attached in relation to this entity.
Neha Tandon and SimTech
The agency also scrutinized SimTech IT Solutions Private Limited, which received credits from mule accounts linked to King567. While Neha Tandon is the Director of SimTech, the ED stated that she had no active role in its management; instead, the entity was handled by her husband, Gulshan Khattar. Because of Khattar's control and the receipt of tainted funds, properties held in Neha Tandon's name were deemed to represent proceeds of crime.
Ongoing Legal Action
This latest attachment follows a series of aggressive moves by the federal agency. The ED previously conducted raids across more than 60 premises in several states, seizing gold bullion, cash, silver jewellery, luxury vehicles, and incriminating digital devices.
MLA KC Veerendra has already been arrested under Section 19 of the PMLA. The agency has also filed a Prosecution Complaint on October 18, 2025, along with a supplementary complaint as the investigation continues to unfold.