According to police, a first information report (FIR) was lodged against Verma, a senior Bahujan Samaj Party (BSP) leader, Wednesday night at the Hazratganj police station on charges of duping the sportsmen of several thousand rupees.
Deputy Inspector General (DIG) Lucknow Ashutosh Pandey told IANS that a case has been registered against the former minister and two of his aides under section 406 of IPC - breach of faith.
He added that Verma had collected Rs.20,000-25,000 from 20 sportsmen across the state.
According to police, the money was taken to organise a Twenty20 Uttar Pradesh Premier Cricket league. The money was deposited but no matches happened.
After receiving the complaints, a probe was ordered. Following the completion of the investigations, the FIR was registered.
The complainants had also met Chief Minister Akhikesh Yadav Wednesday and were assured all possible help.
Verma has been known for his proximity to the party supremo Mayawati. He has held important portfolios such as parliamentary affairs in successive BSP governments in the state.