Veerendra was arrested by the central probe agency in Gangtok, Sikkim.
As per a report by The Times of India, Veerendra along with his associates had travelled to Gangtok where the Congress leader was allegedly leasing a plot of land for a casino.
The ED said it seized Rs. 12 crore in cash, gold jewellery worth Rs. 6 crore, 10 kgs silver and four vehicles during raids which were conducted in 30 premises across several states on Friday.
Property-related documents have been seized from Veerendra's brother KC Nagaraj and his son Pruthvi N Raj.
The ED has also searched five casinos linked to the lawmaker from the Chitradurga assembly constituency.
Veerendra was produced before the Gangtok judicial magistrate.