Betting-linked PMLA case: Karnataka Congress MLA sent to ED custody till August 28

The Enforcement Directorate is probing multiple “shell” companies and casinos in countries like Sri Lanka, Nepal and Georgia in a money laundering case against arrested Karnataka Congress MLA K C Veerendra ‘Puppy’, according to official sources.

A special Prevention of Money Laundering Act (PMLA) court in Bengaluru on Sunday sent Veerendra to ED custody till August 28 after he was arrested by the central agency in Sikkim on Saturday.

He was taken into custody by the agency following multi-state raids against him, his family members and some others in an alleged illegal online and offline betting case.

The ED, in an official statement issued on Saturday, has linked the Chitradurga MLA with the operations of five casinos in Goa named Puppy’s Casino Gold, Ocean Rivers Casino, Puppy’s Casino Pride, Ocean 7 Casino and Big Daddy Casino, apart from some other online betting sites.

The sources said the agency will conduct interrogation of the legislator during the remand period and ask him questions about some “shell” or dummy companies linked to him.

The legal team of the MLA could not be contacted immediately for a comment on the charges made by the ED against him.

There was no response from the Congress party.

The ED suspects that casino operations linked to the MLA were being used to “convert” cash funds into legitimate income by showing credit card payments and later settling the accounts using the money “diverted” from cyber fraud.

Some casinos operational in countries like Sri Lanka, Nepal and Georgia are also under the scanner of the ED in this case as the sources claimed that the operations of these were being managed by Veerendra.

Some computer-based documents recovered during the searches indicate to these offshore businesses, according to the sources.

The ED also recovered some documents which show that Veerendra was looking to purchase a casino from Tamil Nadu-based ‘lottery king’ Santiago Martin.

Martin is already being investigated by the ED as part of another money laundering case.

The ED is also looking at the source of funds used to purchase of some SUVs with “fancy and VIP” number plates by Veerendra and his brother K C Nagaraj and his son Pruthvi N Raj.