Bengaluru, Oct 15 (NationPress) The Karnataka High Court has dismissed the petition for the release of Congress MLA K.C. Veerendra, also known as Veerendra Pappi, who is currently imprisoned in connection with an illegal betting investigation led by the Directorate of Enforcement (ED) and faces allegations of money laundering.

The judicial bench, presided over by Justice M.I. Arun, reviewed the petition filed by MLA Veerendra's spouse, asserting that the MLA's arrest was both illegal and arbitrary, infringing upon his fundamental rights.

The court indicated that any future bail applications from the accused would be evaluated per legal standards. Should the trial court accept the closure report (B report), the petitioner could subsequently file a motion for quashing.

In defense, senior advocate Siddharth Dave, representing Veerendra’s wife, contended that during the interval from the registration of the Enforcement Case Information Report (ECIR) in July to Veerendra’s arrest in Sikkim, the ED failed to issue a single summons under Section 50 of the Prevention of Money Laundering Act (PMLA).

Dave argued that the basis for MLA Veerendra's arrest did not constitute a predicate offense, and that the ED lacked sufficient grounds at the time of his apprehension.

Aravind Kamat, the Additional Solicitor General for the ED, countered by stating that MLA Veerendra was implicated in the processes of generation, concealment, and other activities as outlined in Section 3 of the PMLA, regarding proceeds of crime. Initial investigations indicated that the accused operated illegal casinos across India, Nepal, Sri Lanka, Georgia, and established betting platforms under names like king567 and other 567 Gaming entities.

The accused reportedly amassed substantial illegal earnings, owning properties in Dubai and Goa, corroborated by statements that support the evidence.

Investigators estimate that, given the extensive operation and the volume of online games active since 2021, the illegal earnings (proceeds of crime) exceed Rs 2,000 crores. This estimation is based solely on transaction data from one payment gateway, leading investigators to believe there may be significantly more illicit funds requiring further scrutiny.

The ED has confiscated assets valued at over Rs 150 crore linked to the illegal online betting case involving Congress MLA K.C. Veerendra.

Among the assets seized are 40 kilograms of 24-carat gold bullion worth Rs 50.33 crore from two lockers in Challakere. With these recent actions, the total seizure in this case has exceeded Rs 150 crore. Prior to this, the ED had already attached assets worth Rs 103 crore, which included 21 kilograms of gold bars, cash, jewels, and luxury vehicles.