The Enforcement Directorate’s Bengaluru Zonal Office has submitted a supplementary charge sheet against several individuals in connection with the Rs 2,300 crore illegal online betting scam involving Congress MLA K.C. Veerendra, also known as Pappi. The charge sheet includes names like Pruthvi N Raj, K.C. Thippeswamy, Fonepaisa Payment Solutions Private Limited, Gulshan Khattar, Puppy’s Tours and Travels LLP, Arjun Nagabhushan, Abhijith Sajjan, and Logicforge Solutions Private Limited. The case falls under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation by the ED was initiated based on multiple FIRs lodged by state police authorities across various states, citing offenses under the IPC, 1860, which are considered scheduled offenses under the PMLA. The FIRs relate to fraudulent activities on illegal online betting websites like King567, Play567, Playwin567, Gamexch, and other associated platforms. The probe uncovered the movement of funds through different channels, including payment gateways, mule accounts, foreign entities, and virtual digital assets.
Earlier, the ED had conducted search operations at over 60 locations in Karnataka and other states under the PMLA, resulting in the seizure of significant amounts of cash, gold, vehicles, digital devices, and crucial documents. MLA Veerendra was previously arrested under the PMLA, and assets worth Rs 177.30 crore belonging to him and other accused individuals were provisionally attached. The total assets attached/seized in this case under the PMLA now exceed Rs 320 crore.
Proceeds of crime exceeding Rs 2,300 crore, generated through illegal online betting and gambling activities, have been identified during the investigation. The accused individuals/entities were found to be complicit in the money laundering of these proceeds from criminal activities. The investigation also revealed assets acquired abroad, particularly in Dubai, and transactions involving crypto assets. Further investigations are ongoing.
