Pramesh S Jain
The Directorate of Enforcement (ED),Bengaluru Zonal Office,has provisionally attached assets worth Rs.177.3 crore in connection with an illegal online betting and gambling racket allegedly run by Chitradurga MLA from Congress party,KC Veerendra and his associates.
The provisional attachment order was issued on January 29 under the Prevention of Money Laundering Act (PMLA),2002.
The attached properties include agricultural land, residential sites and other movable assets,which the ED said were derived from proceeds of crime generated through illegal online betting activities.
The ED initiated the investigation based on multiple FIRs registered by police across several states under various sections of the IPC.
The cases pertain to cheating,impersonation and extortion of the public through illegal online betting platforms, including King567 and its associated websites.
According to the ED,the accused allegedly operated a nationwide betting network using a common modus operandi.
Victims were lured into staking money on rigged online casino platforms through payment gateways.Initially, fake winnings were displayed to gain trust,after which users were blocked from withdrawing funds.
The probe revealed the use of hundreds of mule accounts and multiple payment gateways to launder the proceeds of crime.
Earlier,the ED conducted search operations at over 60 locations across several states,seizing cash,gold bullion, jewellery,vehicles,digital devices and incriminating documents.
KC Veerendra was arrested under Section 19 of the PMLA,and a prosecution complaint has already been filed before the special PMLA court.
With the latest attachment,the total value of assets attached in the case has crossed Rs.320 crore.
The ED has so far identified proceeds of crime worth over Rs.2,300 crore generated through illegal online betting and gambling activities.
The investigation is ongoing to trace the remaining proceeds of crime and identify other beneficiaries involved in the racket.
