Home Financial Assets ED Freezes Rs 526.49 Crore Assets of Gameskraft in Money Laundering Case
Financial Assets

ED Freezes Rs 526.49 Crore Assets of Gameskraft in Money Laundering Case

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You can access the ED Press Release from here.

The Directorate of Enforcement (ED) has frozen assets worth around Rs 526.49 crore belonging to gaming company Gameskraft Technologies Pvt. Ltd. in a money laundering probe linked to alleged cheating on online real-money rummy platforms.

The agency carried out searches from May 7 to May 13 across Bengaluru and the NCR region. During the raids, ED seized documents, electronic records, jewellery, cash and financial assets linked to the company and its executives. The agency said it also seized 2.3 kg of gold bullion and diamond jewellery, valued at about Rs 3.5 crore, along with Rs 11 lakh in cash.

Arrests and Court Proceedings: The case stems from multiple FIRs filed in different states, including Telangana, over allegations of cheating and fraud. Earlier this month, the ED arrested the company founders, Prithvi Raj Singh, Vikas Taneja, and Deepak Singh Ahlawat under the Prevention of Money Laundering Act (PMLA). A Bengaluru court later sent Taneja to ED custody for five days.

In January this year, the Karnataka High Court had stayed an earlier ED investigation against Gameskraft after noting that the police had already closed the predicate case on which the money laundering case was based. The court questioned whether the agency could continue proceedings after the underlying criminal case had been closed.

Allegations against online gaming platforms: According to the agency, Gameskraft operated online real-money gaming platforms such as RummyCulture, RummyPrime, RummyTime, Playship and RummyCorner, with a user base of nearly three crore people. The ED alleged that the company continued offering services in states where online real-money gaming is restricted or banned, including Telangana, Andhra Pradesh and Tamil Nadu, by allegedly bypassing geolocation restrictions.

The ED also accused the company of using BOTs, automated software programs, during gameplay without informing users, while publicly claiming that the platform was transparent and free from automated manipulation and charging commissions of 10-15% on user stakes. Investigators alleged that the company initially gave users small wins and allowed withdrawals to build confidence before allegedly using BOTs more aggressively in higher-stakes games.

The agency has also alleged irregularities, including duplicated cards, repeated score patterns, collusion among players, forced logouts and arbitrary blocking of user accounts. Investigators further claimed that the company linked thousands of user IDs to a single bank account in violation of the platform’s rules.

Alleged User Losses And Complaints: According to the ED, its investigation found that users lost around Rs 1,154 crore to BOT-linked accounts. The agency also claimed to have found complaints from users reporting financial distress, mental trauma and, in some cases, suicidal tendencies linked to losses on the platform.

Financial Trail Under Investigation: The probe has also examined alleged financial irregularities, including nearly Rs 100 crore recorded as expenses for software maintenance and consultancy services during 2020-21 and 2021-22. The ED alleged that some vendors later returned the money in cash after deductions.

Investigators further alleged that proceeds generated through the platform were routed into foreign investments, dividends, mutual funds, bonds and other assets. Earlier searches in November 2025 also led to the freezing of Rs 18.57 crore in escrow accounts linked to the company.

The ED launched its wider probe into Gameskraft and other online gaming firms last year, following allegations of algorithm manipulation, money laundering and retention of user funds after the ban on real-money online gaming platforms. The investigation is ongoing.

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