The directorate of enforcement (ED) has arrested WinZO founders Saumya Singh Rathore and Paavan Nanda on charges of money laundering linked to unrefunded real-money gaming funds. The arrests took place in Bengaluru on Wednesday after the duo were questioned at the agency’s zonal office in connection with an ongoing investigation into alleged financial irregularities involving the online gaming platform.
Ms Rathore and Mr Nanda, directors of WinZO Games Pvt Ltd, were produced before a local court the same night and remanded to one-day ED custody. The court has directed the agency to produce them again for detailed arguments on its remand application. The arrests follow a series of search operations carried out over recent weeks under the Prevention of Money Laundering Act (PMLA), spanning multiple premises across Bengaluru and Gurugram.
According to ED, WinZO allegedly held around Rs43 crore belonging to players, funds that regulators say should have been refunded after the Union government banned real-money gaming. Officials claim that despite the prohibition, more than Rs30 crore continues to be parked in escrow accounts without being returned to users. Eight bank accounts with a combined balance of Rs18.57 crore have been frozen, and investigators have seized incriminating electronic devices including mobile phones and laptops from the homes and offices of the founders. The agency has also taken extensive data backups from Gameskraft Technologies Pvt Ltd as part of related probes into suspected fraud and manipulated game outcomes.
The case forms part of a broader crackdown on online gaming platforms accused of withholding customer funds or engaging in practices that violate anti-money laundering rules. Recent ED actions have included raids on Nirdesa Networks Pvt Ltd, Gameskraft Technologies and others suspected of facilitating illegal financial flows through gaming apps.
WinZO, in a statement, says it remains fully compliant with all applicable laws and that its focus remains on protecting our users and ensuring a secure, trustworthy experience.
The investigation, however, is continuing, with officials indicating that more seizures and enforcement actions could follow as forensic analysis of the seized devices progresses.
Earlier this week, ED has frozen around ₹505 crore belonging to WinZO Games after conducting search operations across four locations in Delhi and Gurgaon between 18th November and 22 November 2025. The action was taken under Section 17(1A) of the PMLA. The searches resulted in the freezing of proceeds of crime in the form of bank balances, fixed deposits, mutual funds and bonds held by the company which operates the online real-money gaming app WinZO.
The investigation was initiated based on first information reports (FIRs) filed against WinZO Games and others for alleged cheating, blocking of user accounts, impersonation, misuse of PAN details and fraudulent use of know-your-customer (KYC) information. Complainants claimed they suffered financial losses due to these activities, prompting the ED to examine the company’s operations.
According to the agency, WinZO continued to run real-money games in foreign markets, such as Brazil, US and Germany, from India, using the same platform as the domestic app. This allegedly continued even after the Union government banned real-money gaming, effective from 22 August 2025. ED noted that around ₹43 crore belonging to customers remains unrefunded, despite the ban being in force.
The probe also found that customers were allegedly made to play against algorithms and software without being informed that they were not competing with real human players. The agency says this manipulation allowed the company to generate proceeds of crime from bets placed and lost by genuine users, while also restricting or delaying withdrawals from customer wallets held by WinZO Games.
Investigators further claimed that the company diverted funds abroad under the guise of overseas investments. About U$55mn (million) or around ₹489.90 crore was allegedly parked in a US-based shell entity named WinZO US Inc, even though ED says all operations, bank account management and day-to-day decisions were controlled from India. The agency’s findings also indicate that domestic and international gaming operations, including real-money games, were hosted on a single app and managed from India.
You may also want to read…
