BENGALURU: The Directorate of Enforcement (ED), Bengaluru zonal office, provisionally attached assets worth over Rs 23 crore under Prevention of
Money Laundering Act in a case pertaining to an “online betting and gambling extortion syndicate controlled by Congress MLA, KC Veerendra.” The ED stated that it has attached movable properties worth Rs 13,76,96,706 and immovable properties worth Rs 9,58,50,000, together worth Rs 23,35,46,706.
“The attachment has been made under the Provisional Attachment Order (PAO) No. 42/2026 dated October 23, 2026, representing the equivalent value of Proceeds of Crime (PoC) found in the possession of Veerendra, Gulshan Khattar and Neha Tandon,” the agency stated.
The probe was initiated on the basis of multiple FIRs alleging cheating by personation, criminal conspiracy and extortion through online betting and gambling platforms.
“The investigation carried has revealed that Veerendra and his associates operated illegal online betting platforms, including King567 through a network of payment gateways, shell companies and mule accounts, whereby players were induced to deposit funds and were subsequently cheated through manipulated betting operations and blocked withdrawals.
The suspected proceeds derived from the scheduled offences that were allegedly layered through complex financial transactions and utilised for acquisition of assets and personal enrichment, leading to registration of ECIR,” the agency explained.
“The investigation traced PoC exceeding Rs 2,300 crore, which were layered through multiple accounts, hawala channels and offshore entities, and utilised for acquisition of luxury assets, business investments, foreign remittances and personal expenses, thereby establishing the accused’s involvement in concealment, possession, use and projection of PoC as untainted property.
In the instant case, PoC were found to be received, in the hands of Fonepaisa Payment Solutions Pvt Ltd owned by Khattar, who had received a huge amount of commission for providing services as a key payment gateway and financial intermediary,” the ED claimed. The ED said “out of the PoC thus received, assets worth around Rs 33 crore were attached on January 29 this year.
SimTech IT Solutions Pvt Ltd was also found to have received credits from identified mule bank accounts linked to King567. Tandon, director of SimTech had no active role in its management and the same was handled by her husband, Gulshan Khattar.” Earlier, in the case, ED had conducted search and seizure operations more than 60 premises in several states during which assets worth Rs 343 crore were seized.
