ED Recovers ₹1.37 Cr in Cash in Bengaluru Seat Blocking Scam; BMS, Akash, New Horizon Colleges Under Probe
Bengaluru: The Enforcement Directorate’s Bengaluru Zonal Office said it has provisionally attached assets worth ₹23,35,46,706 in its money-laundering investigation into an alleged online betting, gambling and extortion network linked to K C Veerendra and others.
The attachment, made through an order dated October 23, 2026, comprises movable assets worth ₹13,76,96,706 and immovable properties valued at ₹9,58,50,000. ED said these represent the equivalent value of alleged proceeds of crime found in the possession of Veerendra, Gulshan Khattar and Neha Tandon.
K C Veerendra case and the King567 network
The case arose from multiple FIRs alleging cheating, impersonation, criminal conspiracy and extortion through online betting and gambling platforms. ED alleges that Veerendra and his associates controlled a nationwide network of betting websites, payment gateways, shell companies and mule accounts.
According to the agency, platforms including King567 induced players to deposit money, manipulated betting operations and blocked withdrawals. ED alleges that proceeds exceeding ₹2,300 crore were moved through accounts, hawala channels and offshore entities and used for assets, business investments, foreign remittances and personal expenses.
Payment intermediary and company transactions
ED said Fonepaisa Payment Solutions Private Limited, beneficially owned by Khattar, received commissions for providing payment-gateway and financial-intermediary services in the alleged network. Assets worth approximately ₹33 crore had been attached in this connection under an earlier order dated January 29, 2026.
The agency said SimTech IT Solutions Private Limited received credits from identified mule accounts linked to King567. It also said Tandon, a director of SimTech, had no active role in its management, which was handled by her husband Khattar. ED cited the company’s receipt of funds, Khattar’s control and his alleged role in moving proceeds through Fonepaisa as the basis for treating properties held by or in Tandon’s name as representing alleged proceeds of crime.
Earlier searches and court proceedings
ED said it had previously searched more than 60 premises across several states, seized or frozen assets and arrested Veerendra under the PMLA. A prosecution complaint dated October 18, 2025, and a supplementary complaint dated February 20, 2026, were followed by the Special PMLA Court taking cognizance on May 4, 2026, according to the release.
An earlier attachment of ₹177.30 crore was subsequently confirmed by the PMLA Adjudicating Authority in New Delhi, ED said. With the latest provisional attachment, the aggregate value of properties attached, seized or frozen in the case exceeds ₹343 crore, the agency said. Further investigation is continuing.
About the Author
Atul Chaturvedi 
