Massive Online Betting Scandal: Unveiling the Veerendra Network

The Enforcement Directorate has accused Karnataka Congress MLA K C Veerendra of running illegal online betting sites, amassing over Rs 2,000 crore through these operations. The agency claims that the funds were masked as legitimate transactions by utilizing fintech service providers and sophisticated payment gateways. Veerendra is currently in ED custody following his arrest in Sikkim.

ED investigations uncovered that numerous gaming websites, operated by Veerendra and his Dubai-based associates, used complex networks of mule accounts and middlemen to launder money. These transactions, involving layering through escrow accounts and other third-party services, facilitated the siphoning of money via hawala routes.

Further probing revealed that Veerendra's brother was involved in running business entities related to the call center and gaming industries from Dubai. In this elaborate setup, the ED has identified entities and prominent figures who played crucial roles in concealing the illicit origins of the money, extending the investigation's reaches beyond India.

(With inputs from agencies.)