BENGALURU: The Enforcement Directorate (ED) has attached fresh assets worth Rs 177 crore in connection with a nationwide illegal online betting and gaming racket, alleging that Karnataka Congress MLA K C Veerendra “Puppy” and his associates were the key masterminds behind the operation. With the latest action, the total value of properties attached in the case has risen to Rs 320 crore, significantly escalating the pressure on the ruling Congress in Karnataka.
In an official statement, the ED said the provisional attachment was carried out under the Prevention of Money Laundering Act (PMLA), covering both movable and immovable properties, including agricultural land and residential plots. While the central agency did not disclose the exact ownership details of the attached assets, it asserted that they were either directly or indirectly linked to proceeds of crime generated through illegal online betting platforms operating across multiple states.
ED, Bengaluru Zonal Office has provisionally attached assets worth Rs. 177.3 Crore (approx.) on 29.01.2026 under PMLA, 2002 in the case relating to illegal online betting and gambling activities involving KC Veerendra and his associates. The attached properties include immovable… pic.twitter.com/DTLdfRio8l
— ED (@dir_ed) January 29, 2026
The agency alleged that Veerendra Puppy, a 51-year-old legislator from the Chitradurga Assembly constituency, played a central role in facilitating and expanding the betting network. According to investigators, the racket used sophisticated digital infrastructure, shell entities, and layered financial transactions to launder large sums of money earned from illegal real-money gaming and betting activities.
Veerendra Puppy was arrested by the ED in August 2025 in Sikkim, where he had reportedly travelled on a business visit to secure a casino contract. He was later granted bail by a competent court, but the agency continues to describe him as a “key accused” in the money laundering case. The ED claims that evidence collected so far establishes his active involvement in the operation, management, and financial routing of the illegal betting network.
The latest attachment comes amid the Centre’s broader crackdown on online betting and real-money gaming platforms. The Union government had last year imposed restrictions and issued prohibitory orders against certain forms of online real-money gaming, citing concerns over money laundering, tax evasion, and the social impact of gambling. The ED said the accused exploited regulatory gaps and used offshore servers, digital wallets, and benami accounts to evade scrutiny.
According to officials familiar with the probe, the betting syndicate allegedly operated through multiple apps and websites, targeting users across India. Funds collected from bettors were allegedly routed through a complex web of accounts before being invested in high-value real estate and other assets, some of which have now been attached.
The case has political ramifications as well, with opposition parties accusing the Congress of shielding leaders accused of financial crimes. The Congress, however, has maintained that the case is politically motivated and has reiterated that the law should take its own course. Party leaders have pointed out that Veerendra Puppy is out on bail and has not been convicted, asserting that allegations should not be equated with guilt.
Meanwhile, the ED has indicated that further investigation is underway and that more attachments and arrests cannot be ruled out. Officials said they are examining digital evidence, financial records, and international money trails to identify additional beneficiaries and facilitators of the betting network.
