Pramesh S Jain
The Directorate of Enforcement (ED),Bengaluru Zonal Office,carried out extensive search operations,at multiple locations in Bengaluru and Gurugram from November 18 to 22,under the Prevention of Money Laundering Act (PMLA),2002.
The searches were conducted at the offices of Nirdesa Networks Pvt. Ltd.(NNPL),Gameskraft Technologies Pvt. Ltd.(GTPL),and the residences of their directors and other accused involved in the case .
The ED initiated the probe based on an FIR filed by the Karnataka Police alleging large-scale fraud by Pocket52, an online gaming platform operated by NNPL.
The complaint accused the platform of manipulating game outcomes,player collusion,technical glitches, restricting withdrawals,and suppressing transparency features like hand history.
One complainant reported losing over ₹3 crore,claiming systematic cheating and irresponsible gaming practices.
During the PMLA investigation,the ED found numerous user complaints pointing to manipulation and exploitation by the platform.
Officials seized mobile phones,laptops, and other electronic devices from the directors and founders, along with voluminous data backups from GTPL.
Despite the ban on real-money games under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, enforced on August 22,2025, the company reportedly retained over ₹30 crore in escrow accounts without refunding players.
The ED has also freezed eight escrow bank accounts holding approximately ₹18.57 crore,suspected to be proceeds of crime.
In a separate Case against another gaming company identified as WinZO Under ED Scanner, ₹505 Crore Frozen the ED conducted searches at four locations in Delhi and Gurugram against WinZO Games Pvt.Ltd.The company operates real-money gaming services through the “WinZO” app.
During the searches,the ED froze ₹505 crore worth of suspected proceeds of crime, including bank balances, bonds, fixed deposits, and mutual funds, under Section 17(1A) of PMLA.
The investigation began after FIRs alleged cheating, account blocking, impersonation, misuse of PAN details, and large financial losses suffered by users.
The ED found that WinZO continued operating real-money games in foreign markets such as the USA, Brazil, and Germany,using the same platform as India—even after the nationwide ban on RMGs took effect on August 22, 2025.
The company reportedly held ₹43 crore belonging to players without refunding.
The probe further revealed that WinZO allowed customers to unknowingly play against computer algorithms rather than real players,while also restricting withdrawals.
The ED alleges that the company earned proceeds of crime by exploiting users through these practices.
Probe uncovered diversion of Indian funds to overseas entities.
Around USD 55 million (₹489.90 crore) was traced to a US bank account operated under WinZO US Inc.,which officials described as a shell company controlled from India.
Further investigation in both cases is in progress.
