Daijiworld Media Network – Bengaluru
Bengaluru, Oct 10: In a sensational twist to Karnataka’s largest online betting scandal, the Enforcement Directorate (ED) has unearthed a treasure trove of illegal assets linked to Chitradurga Congress MLA Veerendra Pappi, including the seizure of 40 kilograms of gold worth Rs 50.33 crore from bank lockers and his Challakere residence.
The gold was recovered from two lockers in Federal Bank, Challakere, during searches conducted by ED officials based on information extracted during Pappi’s interrogation. The latest haul pushes the total value of seized and attached assets in the case to over Rs 150 crore.
Earlier, the ED had frozen assets worth Rs 103 crore, including 21 kilos of gold bars, stacks of cash, gold and silver jewellery, multiple bank accounts, and a fleet of luxury vehicles.
Multi-crore online betting racket exposed
Veerendra Pappi is under investigation for allegedly masterminding a massive illegal online betting operation through multiple platforms such as King 567 and Raj 567, in collusion with family members and associates. These websites reportedly duped thousands of unsuspecting players by collecting money through payment gateways like PhonePe, which was then rerouted via a network of mule bank accounts across the country.
The ED estimates that the racket handled transactions exceeding Rs 2,000 crore, making it one of the most high-value financial frauds currently under probe.
An ED official stated, “Pappi and his network operated in a highly organised manner, laundering massive sums of black money through layered transactions. The use of mule accounts across states made detection extremely difficult.”
Dubai links and illegal foreign transfers
The investigation has further revealed that proceeds from the betting racket were transferred illegally to foreign bank accounts. Pappi’s brothers, K C Tippeswamy and Prithviraj, are alleged to have run call centres in Dubai under corporate fronts like Diamond Softech, TRS Technologies, and Prime 9 Technologies, which served as facades for online gaming and money laundering operations.
The ED suspects that funds were routed internationally through these entities to conceal their origin and avoid Indian regulatory scrutiny.
Luxury lifestyles, travel, and shell payments
According to the ED, the accused, including Pappi and his close associates, spent betting revenues on international travel bookings, luxury visas, and premium hospitality services. Expenses for bulk SMS marketing, platform hosting, and SEO services were also covered through mule accounts linked to the gambling proceeds.
“The money was routed through multiple shell companies and false invoices to launder betting funds and fund a lavish lifestyle,” an officer added.
Arrest from Gangtok and custody
Pappi was apprehended in Gangtok, Sikkim, with assistance from Kolkata ED officials, after reportedly evading arrest for weeks. He was flown to Bengaluru, produced before the 35th CCH Court in Koramangala, and remanded to five days of ED custody. On August 28, his legal team submitted a bail application, which is currently under consideration.
The ED confirmed that the investigation is ongoing and hinted at more arrests and asset seizures linked to this extensive online betting and money laundering network.
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