The Directorate of Enforcement (ED) today arrested a Karnataka MLA under the provisions of PMLA in connection with an alleged illegal betting case (both online and offline), the agency said.

KC Veerendra was arrested from Gangtok, Sikkim, and was produced before the concerned magistrate where the agency officials obtained transit remand in view of producing him before the court in Bengaluru.

This arrest followed after searches conducted by the ED's Bengaluru Zonal Office on Friday and Saturday, at 31 locations across the country including Gangtok, Chitradurga District, Bangalore City, Hubli, Jodhpur, Mumbai and Goa (including at five casinos) in the case against Veerendra and other persons in the matter of alleged illegal online and offline betting.

Searches revealed that the accused is allegedly running several online betting sites, and further, the accused person's brother is operating three business entities from Dubai which are related to the call centre services and gaming business of the MLA, the agency claimed.

An amount of approximately Rs 12 Crore in cash, including around a crore in foreign currency, Gold Jewellery worth Rs. 6 crore (approximately), silver articles around 10 kgs, along with four vehicles were seized under PMLA,2002.

The agency also froze 17 bank accounts and two lockers, and many properties related documents were also seized from the premises of people related to MLA Veerendra.

It was revealed that the said MLA, along with his associates had travelled to Gangktok through Bagdogra on business visit to lease a land casino.

According to the agency sources, findings in the searches indicate that material seized also suggests complex layering of cash and other funds.

Further investigation of the case is underway.