Gangtok, August 22, 2025: The Enforcement Directorate (ED) took Chitradurga Congress MLA K.C. Veerendra Puppy into custody from a hotel in Gangtok, Sikkim, on Thursday night, August 21, 2025, in connection with an ongoing investigation into a money laundering racket linked to online gaming and betting operations. The action was carried out under the provisions of the Prevention of Money Laundering Act (PMLA), with a special ED team tracking Puppy, who represents the Chitradurga Assembly constituency, according to official sources.

On Friday morning, August 22, 2025, the ED conducted coordinated raids at 30 locations across six states, including six premises in Chitradurga, ten in Bengaluru, three in Jodhpur, one in Hubballi, two in Mumbai, and eight in Goa. The searches targeted properties linked to Puppy, his brothers K.C. Nagaraja and K.C. Tippeswamy, and associates such as Kusuma Hanumantharayappa, Anil Gowda, and a hawala operator from Hubballi. The raids, including at Puppy’s residence near Veerabhadraswamy Temple in Challakere and an upscale apartment in Bengaluru’s Vasanth Nagar, resulted in the seizure of digital devices, financial records, documents, and one kilogram of gold.

Preliminary findings indicate that Puppy and his associates operated illegal betting websites, including King567, Raja567, Puppy’s003, and Rathna Gaming, and held stakes in five Goa casinos: Puppy’s Casino Gold, Ocean Rivers Casino, Puppy’s Casino Pride, Ocean 7 Casino, and Big Daddy Casino. These platforms are alleged to have facilitated suspicious money transfers and financial irregularities.

Pappy, who switched from JD(S) to Congress before the 2023 Assembly elections, previously faced scrutiny in 2016 when the Income Tax Department seized Rs 5.7 crore in new currency, 32 kilograms of gold, and Rs 90 lakh in old notes from his bathroom in Challakere.

Critical Note: The investigation is ongoing, with no official statement from Puppy, ED or the Congress party addressing the allegations.