Illegal betting scam: ED raids multiple locations in Cong MLA’s native town in Karnataka

September 6, 2025

Bengaluru: The Enforcement Directorate (ED) is carrying out raids across multiple locations on Saturday in connection with an illegal betting scam in Challakere town, Chitradurga district, linked to Karnataka Congress MLA K.C. Veerendra, also known as Pappi.

The action follows information provided by MLA Veerendra, who is currently under arrest. Sources indicate that ED officials are searching cooperative bank branches and a private nationalised bank in Challakere.

Multi-Crore Betting Racket Unearthed

The ED’s probe has revealed that Veerendra and his associates collected over ₹2,000 crore through a single payment gateway from illegal betting websites in a short time.

Earlier, on September 2, ED’s Zonal Office conducted search operations at several locations in Bengaluru and Challakere under the Prevention of Money Laundering Act (PMLA), 2002. The searches were linked to allegations of cheating the public through illegal online betting platforms.

Nationwide Search Operations

In total, 31 premises were searched across Challakere, Bengaluru, Panaji, Gangtok, Jodhpur, Hubli, and Mumbai, according to the ED.

During the raids, officials seized five luxury vehicles, including Mercedes-Benz cars with VIP registration numbers such as 0003 and 5267.

Assets Frozen and Accounts Traced

The ED has frozen ₹55 crore, comprising ₹40.69 crore in nine bank accounts and one Demat account belonging to Veerendra, along with ₹14.46 crore spread across 262 mule accounts. These mule accounts were linked to payment gateways used to route funds collected from several betting websites run by Veerendra and his network.

Online Betting Sites Under Scrutiny

Investigators have identified multiple betting platforms, including King567, Raja567, and Lion567, allegedly operated by the accused. Several payment gateways were used to channel the proceeds.

The ED stated that transactions from just one payment gateway amounted to over ₹2,000 crore within a short period, highlighting the scale of the racket.