ED Arrests Karnataka Congress MLA KC Veerendra ‘Puppy’ in Massive Illegal Betting Racket Amid New National Crackdown
In a high-profile enforcement action, the Directorate of Enforcement (ED) arrested Karnataka Congress MLA KC Veerendra, popularly known as ‘Puppy’, on August 23, 2025, in Gangtok, Sikkim, for his alleged involvement in a sprawling illegal online and offline betting syndicate. The 50-year-old legislator from Chitradurga, who won his seat in the last assembly elections as a Congress candidate, was taken into custody under the Prevention of Money Laundering Act (PMLA), 2002, following multi-state raids that exposed a network valued at hundreds of crores with international ties.
The arrest comes just a day after President Droupadi Murmu granted assent to the Promotion and Regulation of Online Gaming Bill, 2025, a landmark legislation introduced by the Narendra Modi government and passed by Parliament on August 21, 2025. This new law bans all real-money online games, betting, and gambling activities nationwide, imposing penalties including up to five years in prison and hefty fines for offenders, while promoting regulated e-sports and non-monetary gaming. The bill prohibits the promotion of such games and bars financial institutions from facilitating transactions, effectively threatening a $23 billion industry and leading to immediate shutdowns of apps and sites across India. ED officials stated that the intensified scrutiny and raids were part of a broader crackdown aligned with this fresh regulatory framework, which aims to curb money laundering through unregulated gaming platforms.
During extensive searches conducted on August 22 and 23 at 31-32 locations across states including Karnataka (Bengaluru, Chitradurga, Hubballi), Sikkim (Gangtok), Rajasthan (Jodhpur), Maharashtra (Mumbai), and Goa, the ED uncovered staggering evidence of illicit operations. From Veerendra’s premises and associated sites, authorities seized Rs 12 crore in cash—predominantly in Rs 500 notes, including Rs 1 crore in foreign currencies such as US dollars (in $100 bundles), British pounds (£10 and £20), UAE dirhams (500), and euros (€100 and €50). Additionally, gold jewellery valued at Rs 6 crore, 10 kg of silver articles, and four luxury vehicles were impounded. Notably, three of these vehicles bore the same VIP registration number ‘0003’, highlighting Veerendra’s penchant for ostentatious assets. The raids also yielded incriminating documents, property papers, high-value credit and debit cards, and membership cards for international casinos like MGM, Bellagio, Metropolitan, Marina, and Casino Jewel, as well as luxury hotels including Taj, Hyatt, and The Leela.
Veerendra, a gaming businessman-turned-politician with declared assets exceeding Rs 134 crore (as per his 2023 election affidavit), is accused of masterminding a sophisticated betting empire. He allegedly operated online betting platforms such as King567, Raja567, Puppy’s003, Rathna Gaming, and others, which facilitated illegal wagers on sports, games, and events. In Goa, the ED targeted five casinos linked to him: Puppy’s Casino Gold, Ocean Rivers Casino, Puppy’s Casino Pride, Ocean 7 Casino, and Big Daddy Casino, revealing offshore and floating casino operations that funneled proceeds through layered financial channels. Investigations showed “complex layering” of funds, blending domestic and international transactions to launder money from these activities.
Family members played key roles in the network. Veerendra’s brother, KC Thippeswamy, based in Dubai, managed three entities—Diamond Softech, TRS Technologies, and Prime9Technologies—handling call center services, gaming operations, and fund transfers for the betting syndicate. Another brother, KC Nagaraj, and nephew Pruthvi N Raj (Veerendra’s son) were implicated, with the ED freezing 17 bank accounts and two lockers in their names, along with seizing related property documents. At the time of his arrest, Veerendra was in Gangtok with associates, including Thippeswamy and Pruthvi, negotiating a lease for a land-based casino, underscoring the syndicate’s expansion ambitions.
Veerendra’s political and business history adds layers to the case. A B.Com graduate and agriculturist by profession, he is the son-in-law of Kannada actor Doddanna and has faced prior legal troubles, including a 2016 Income Tax raid that uncovered Rs 5.7 crore in new currency notes, 32 kg of gold, and old notes hidden in his bathroom, linked to a conspiracy with bank officials. He has also been charged with public nuisance, bribery, and election undue influence in the past. Social media posts have highlighted his lavish lifestyle, including claims of owning Chitradurga’s largest car collection, now under ED scrutiny.
Following his arrest, Veerendra was produced before a magistrate court in Sikkim, which granted transit remand, allowing the ED to transport him to Bengaluru for further interrogation and court proceedings. The case highlights the intersection of politics, organized crime, and unregulated gaming in India, with the new online gaming law expected to trigger more such crackdowns on similar networks.
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