New Delhi: Arrested Karnataka Congress MLA K C Veerendra, his family members and associates booked international travel tickets worth crores of rupees and these were financed through a network of mule accounts linked to proceeds from online betting websites, the Enforcement Directorate alleged on Tuesday.
The evidence suggests that the funds used for these high-value transactions were diverted from illicit online activities and funnelled through multiple intermediary accounts to obscure their origin the federal probe agency claimed in a statement.
Veerendra is being investigated as the prime accused” in a money laundering case linked to alleged cheating of public through illegal online betting.
The 50-year-old Chitradurga legislator was arrested late last month by the ED from Sikkim where he had gone on a business trip to lease a casino.
His legal team has told the courts that the charges made by the ED against him were baseless.
The ED also conducted fresh searches in this case on September 6 at Challakere (Chitradurga district) and seized a variety of gold articles worth a total Rs 24 crore.
This included 24-carat gold bullion weighing 21.43 kg, 11 units of gold coated silver bars weighing 10.98 kg and about 1 kg gold jewellery.
The agency did not specify from whose premises these gold items were seized by it under the provisions of the Prevention of Money Laundering Act (PMLA).
“After considering this seizure, cumulative seizure of proceeds of crime in this case has crossed Rs 100 crore as on date,” the agency said.
The ED has accused the MLA of “running” several online betting sites in the name of King567, Raja567, Lion567, Play567, Playwin567, etc. It has been claimed that several payment gateways were used for routing payments collected through these websites.
“ED investigation revealed that K C Veerendra his family members and associates have booked several international travel tickets worth crores of rupees, financed through a network of mule accounts linked to proceeds from online betting websites,” it alleged.
A number of luxury vehicles, allegedly used by Veerendra and his family, have been found by the ED during the multiple rounds of searches conducted by it in this case.
A Mercedes Benz registered in the name of ABH Infrastructures of Anil Gowda and a Range Rover funded” by a person named Gulshan Khattar of Fonepaisa were also found, the ED said.
Gowda has challenged the ED summons issued to him in this case before the Karnataka High Court stating the notice was a violation of his rights as a professional advocate of Veerendra.
The ED had contended before the high court that it summoned Gowda not in his capacity as a lawyer but because of his business involvement in the case.
The court has reserved its order while grating interim protection to Gowda– brother of Kusuma H, the losing Congress candidate from the R R Nagar assembly seat during the 2023 assembly polls– from any coercive ED action against him.
