Tag: ED Raid

Karnataka Congress MLA KC Veerendra Arrested in Major Illegal Betting Scandal Involving Rs 6 Crore in Gold and Cash

Karnataka Congress MLA KC Veerendra Arrested for Alleged Involvement in Betting Scandal

The Enforcement Directorate (ED) arrested Karnataka Congress MLA KC Veerendra in Gangtok on Saturday, implicating him in illegal online and offline betting activities. Veerendra, along with his associates, allegedly traveled to Gangtok for the purpose of leasing land for a casino.

This arrest follows a significant raid carried out by the anti-money laundering agency on 30 premises linked to Veerendra, resulting in the seizure of approximately Rs 12 crore in cash. This amount included nearly one crore in foreign currency, gold jewelry valued at around Rs 6 crore, and about 10 kgs of silver articles. Additionally, four vehicles were confiscated during the operation.

As part of the ongoing investigation, the ED has also frozen 17 bank accounts and two bank lockers associated with Veerendra. Crucially, property-related documents were seized from the locations belonging to his brother, KC Nagaraj, and his son, Pruthvi N Raj. Reports indicate that Veerendra’s associates, including his brother KC Thippeswamy and Pruthvi N Raj, were allegedly managing online gaming operations from Dubai. Incriminating materials discovered during the searches suggested “complex layering of cash and other funds.”

Veerendra has been brought before a Gangtok judicial magistrate to further identify the alleged proceeds of crime. Concurrently, the ED has conducted searches at five casinos in Goa—Puppy’s Casino Gold, Ocean Rivers Casino, Puppy’s Casino Pride, Ocean 7 Casino, and Big Daddy Casino—linked to Veerendra as part of the money laundering investigation.

Sources revealed that Veerendra is reportedly operating multiple online betting sites, including King567, Raja567, Puppy’s003, and Rathna Gaming. Furthermore, his brother, KC Thippeswamy, is said to manage three business entities from Dubai: Diamond Softech, TRS Technologies, and Prime9Technologies, which are connected to call centers and the gaming business of K C Veerendra.

The arrest of a sitting politician raises questions about the potential impact on future criminal activities. Will such actions deter similar conduct among public figures?

ED Conducts Raids on Concast Steel and Power Group, Confiscates Jewelry and Vehicles

ED Conducts Major Raids on Concast Steel and Power Group, Seizes Assets Worth ₹4.5 Crore

The Kolkata Zonal Office of the Directorate of Enforcement (ED) recently conducted extensive search operations at 13 locations related to the Concast Steel and Power Group. In these operations, the ED seized assets including gold and jewellery valued at ₹4.5 Crore, along with eight vehicles, among which were luxury cars.

These search and seizure actions were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing investigation into a bank fraud case. According to a press statement released by the Enforcement Directorate, the Concast Group had availed credit facilities from a consortium that included 11 Public Sector Banks and five financial institutions, yielding a total default of ₹6210 Crore after the company was classified as a Non-Performing Asset (NPA) on September 30, 2016. The ED initiated its investigation based on an FIR filed by the CBI in Kolkata, which cited various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, against Sanjay Sureka and several others, following a complaint from the State Bank of India (SBI), the lead bank in the consortium.

The Concast Group, promoted by Sanjay Sureka, operates out of Kolkata and has integrated facilities across West Bengal, Odisha, and Andhra Pradesh. It specializes in the production of sponge iron, pig iron, mild steel, and rolled products such as TMT bars, angles, channels, and Ferro alloys. The ED’s investigation revealed that the borrower company, M/s Concast Steel and Power Limited, had been utilizing multiple Letter of Credit (LC) facilities from the consortium of banks, which were later devolved.

The ED’s findings indicate that a significant number of these Letters of Credit were opened in the names of related parties. Subsequently, the diverted funds were traced back to accounts belonging to group companies as well as personal accounts. The Enforcement Directorate’s statement further highlighted that the promoter had established a complex network of shell entities, allegedly created in the names of his employees, relatives, and associates, to divert and launder the loan funds obtained from the consortium of banks.