Bengaluru, Oct 27 — In fresh action against the illegal online betting ecosystem, the ED has attached movable and immovable properties worth Rs 23.35 crore linked to a larger conspiracy involving proceeds of crime (PoC) totalling Rs 2,300 crore, an official said on Tuesday.
The Directorate of Enforcement (ED), Bengaluru Zonal Office, provisionally attached the assets under the Prevention of Money Laundering Act (PMLA), 2002, in the case of K.C. Veerendra and Others, the official said in a statement.
The attachment has been made vide Provisional Attachment Order (PAO) No. 42/2026 dated October 23, representing the equivalent value of proceeds of crime (PoC), found in the possession of K.C. Veerendra, Gulshan Khattar and Neha Tandon, the ED said.
The attached movable properties are valued at Rs 13.76 crore and immovable properties are valued at Rs 9.58 crore, the ED said.
The ED investigation was initiated based on multiple FIRs alleging cheating, cheating by impersonation, criminal conspiracy and extortion through online betting and gambling platforms.
Investigation revealed a nationwide network of betting websites, payment gateways, shell companies and mule accounts allegedly controlled by Veerendra and his associates for generating and laundering PoC, the ED said.
The suspected proceeds derived from the scheduled offences were allegedly layered through complex financial transactions and utilised for acquisition of assets and personal enrichment, leading to registration of ECIR and commencement of investigation under the provisions of the PMLA, it said.
The investigation carried out by the ED 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 subsequently cheated through manipulated betting operations and blocked withdrawals.
The investigation traced proceeds of crime 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 proceeds of crime as untainted property, constituting the offence of money laundering under Section 3 of the PMLA, the ED said.
In the instant case, proceeds of crime were found to be received in the hands of Fonepaisa Payment Solutions Private Limited, beneficially owned by Gulshan Khattar, who had received a huge amount of commission for providing services as a key payment gateway and financial intermediary in the illegal online betting ecosystem, the ED said.
Out of the PoC received, assets worth approximately Rs.33 crore were attached through an order dated January 29, 2026, the ED said.
During the investigation, SimTech was found to have received credits from identified mule bank accounts linked to king567. Neha Tandon, director of SimTech IT Solutions Private Limited, had no active role in its management and the same was handled by her husband, Gulshan Khattar, the ED said.
The receipt of tainted funds by SimTech, coupled with Khattar's control over the entity and his role in the generation and movement of PoC through Fonepaisa, forms the basis that properties held by or in the name of Neha Tandon constitute or represent Proceeds of Crime, the ED said.
Earlier, in the case, ED had conducted extensive search and seizure operations across more than 60 premises in several States under Section 17 of PMLA, during which large quantities of cash, gold bullion, gold and silver jewellery, balances lying in mule accounts, vehicles, digital devices and incriminating documents were seized/frozen. The ED had also arrested Veerendra under Section 19 of PMLA.
Investigation under PMLA resulted in filing of a Prosecution Complaint dated October 18, 2025 and a Supplementary Prosecution Complaint dated February 20, 2026, pursuant to which cognisance was taken by the Special Court, PMLA, on May 4, 2026.
In continuation of the seizure/freezing of movable/immovable assets, earlier, this directorate had provisionally attached properties worth Rs 177.30 crore, which was subsequently confirmed by the Adjudicating Authority, MLA, New Delhi. Further, vide the instant PAO, additional movable and immovable properties valued at Rs 23.35 crore have also been attached, said the statement.
Accordingly, the aggregate value of properties attached/seized/frozen till date exceeds Rs 343 crore, under the provisions of the PMLA, 2002. The instant provisional attachment has been made to safeguard the value of the Proceeds of Crime, in accordance with the provisions of PMLA, 2002, the ED said.