Bengaluru: The Enforcement Directorate (ED) has arrested Chitradurga Congress MLA K.C. Veerendra, widely known as “Pappi,” in connection with a massive illegal online betting and gambling racket that spanned across states and even had links overseas. The high-profile legislator was picked up in Gangtok, Sikkim, on Saturday and produced before a local magistrate before being granted transit remand to be taken to Bengaluru.
The dramatic arrest comes after ED officials carried out coordinated raids at more than 30 locations across the country, including six premises in Chitradurga, ten in Bengaluru, five in Goa, five in Sikkim, and one each in Hubballi, Mumbai, and Jodhpur. The searches have unearthed staggering evidence of financial crime, raising serious questions over how a sitting Congress MLA could be at the center of a multi-crore betting empire.
The raids on Pappi’s residence in Challakere lasted nearly 18 hours. Officials seized Rs 12 crore in cash, Rs 1 crore in foreign currency, gold ornaments worth Rs 6 crore, 10 kg of silver, four luxury vehicles, 17 bank accounts, and two lockers. Investigators also recovered documents pointing to casino memberships abroad, including MGM, Bellagio, and Marina casinos, as well as luxury hospitality cards from Taj, Leela, and Hyatt.
This is not the first time Veerendra Pappi has faced action. In December 2016, just weeks after demonetization, Income Tax officials discovered Rs 5 crore hidden in a secret bathroom wall compartment at his house, along with 30 kg of gold and a stash of freshly printed Rs 2,000 notes.
Betting empire across states
According to ED sources, Pappi and his brothers KC Thippeswamy and KC Nagaraju have been running casinos and gaming centers in Karnataka and Goa for years, while also operating illegal online betting platforms under multiple fronts. Companies like King567, Raja567, Puppy’s003, and Ratna Gaming were allegedly managed from call centers disguised as IT firms in Dubai.
Investigators claim Thippeswamy has registered three companies in Dubai — Diamond Softtech, TRS Technologies, and Prime9 Technologies — through which crores of rupees earned in India were siphoned abroad. The money laundering trail, officials say, clearly shows violations under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA).
What has shocked investigators is how Pappi’s network allegedly exploited loopholes in Sikkim’s casino laws. While locals in Sikkim are barred from gambling, Pappi’s associates reportedly issued fake out-of-state address cards to Sikkim residents, enabling them to participate in betting activities. Large volumes of cash were then routed through shell companies, raising suspicions of black money being laundered on a massive scale.
The ED has also seized bank documents relating to casino transactions in Goa and Sikkim, as well as ledgers showing suspicious cross-border money movements.
Political embarrassment for Congress
The arrest has come as a huge embarrassment to the Congress, with the party facing mounting criticism for allowing tainted leaders to thrive within its ranks. Opposition leaders have already begun targeting Chief Minister Siddaramaiah and Deputy CM D.K. Shivakumar, accusing them of shielding corrupt legislators.
Even as the state assembly session was underway, ED sleuths swooped down on the MLA’s premises, leaving the Congress red-faced. While Veerendra’s brother K.C. Nagaraj tried to downplay the incident, claiming, “We are ready for the investigation, MLA Veerendra will also cooperate,” the sheer scale of the cash haul tells a different story.
The ED has not confined its probe to Pappi’s family alone. The agency has also raided the premises of Anil Gowda, brother of Congress leader Kusuma Hanumantharayappa from Rajarajeshwari Nagar. At least three houses and an office in Nagarabhavi and Papareddy Palya were searched in connection with Pappi’s companies.
Sources confirmed that documents recovered from these locations indicate financial ties between Pappi’s betting empire and other Congress-linked businessmen. This has intensified speculation that the scandal could widen further and drag more political names into the net.
The latest crackdown has revived memories of the 2016 demonetisation raid, when unexplained wealth in freshly minted currency was found in Pappi’s home. Despite such damning evidence in the past, the MLA continued his political career with little consequence. His arrest now strengthens the perception that political protection has long emboldened him to run parallel illegal businesses while holding public office.
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