CBI arrests KC Veerendra after I-T finds Rs.6.6 cr stashed in his bathroom

It was in the unlikeliest of places that they discovered the cash, amounting to Rs.6.6 crore: a secret chamber in the bathroom.

CBI arrests KC Veerendra after I-T finds Rs.6.6 cr stashed in his bathroom

The CBI has arrested KC Veerendra, a JD(S) leader and businessman from Challakere near Chitradurga, in Karnataka in connection with the huge pile of Rs 2,000 notes found in his possession.

“We arrested KC Veerendra in Hubballi on December 10 and brought him to Bengaluru the following day. He has been produced before the CBI court. He is in our custody for six days,'' News Karnataka quoted a CBI official.


The FIR includes several officials of Kotak Mahindra Bank, ICICI Bank, State Bank of India and State Bank of Mysore.

On Saturday, Income Tax officials conducted raids on 15 premises, including Veerendra’s house in Challakere and a casino owned by him in Goa.

They discovered a secret cash chamber in his new swanky residence in Chitradurga. It was in the unlikeliest of places that they discovered the cash, amounting to Rs.6.6 crore: a secret chamber in the bathroom.

The taxmen seized Rs.5.7 crore in Rs 2,000 notes, besides Rs.90 lakh in Rs.100 and Rs.20 denominations in Hubballi district and in Challakere.

A source told News Karnataka said Veerendra colluded with some bank officials and middlemen to exchange the demonetised currency with Rs.2,000 notes. Reports from Hubballi say that I-T officials interrogated Veerendra, Samundar Singh of Sagar Finance Company and owners of three casinos in Goa.

On Sunday night, Veerendra was asked about the source of money. Singh and the casino owners were interrogated on Monday.

Veerendra, a former chairman of Primary Land Development Bank, was running a chit fund business and also used to lend money before diversifying into a casino and other ventures. His name had figured in cricket betting too. He is also the son-in-law of Kannada actor Doddanna.