ED Arrests Directors of WinZO Games in Money Laundering Case.

Headnote:

The Enforcement Directorate (ED), Bengaluru Zonal Office, arrested Paavan Nanda and Saumya Singh Rathore, Directors of M/s WinZO Games Pvt. Ltd., an online real-money gaming platform, for alleged involvement in money laundering activities. ED’s investigation has uncovered fraudulent gaming practices, manipulation using software algorithms, illegal withholding of customer funds, diversion of substantial sums abroad, and operation of real-money games in foreign jurisdictions despite regulatory prohibitions. The Court has granted ED 10 days of custody for further investigation.

Background:

• ED arrested Paavan Nanda and Saumya Singh Rathore on 26.11.2025 under provisions of PMLA, 2002.

• They were produced before the Principal City Civil & Sessions Judge, Bengaluru (CCH-1) on 27.11.2025, where ED was granted custody of the accused till 06.12.2025.

• The action follows FIRs filed against WinZO Games Pvt. Ltd. and others for:

– cheating customers,

– blocking user accounts,

– impersonation,

– misuse of PAN details, and

– other fraudulent practices.

• ED had earlier conducted search operations at WinZO’s Delhi office and at the residence of Ms. Rathore.

Court’s Observations / ED’s Findings:

• WinZO Games Pvt. Ltd. allegedly engaged in criminal and fraudulent gaming practices.

• Users were made to participate in real-money games against software algorithms rather than real players, without disclosure.

• The company restricted or blocked withdrawals of customer balances unlawfully.

• The Proceeds of Crime (POC) represent money lost by genuine players due to manipulation through algorithms and were credited to WinZO’s bank accounts.

• ED has frozen ₹505 crore in bank accounts, FDRs, mutual funds, and bonds under Section 17(1A), PMLA.

Additional Findings:

• WinZO allegedly continued to operate Real Money Games (RMGs) in Brazil, USA, Germany, and other countries, even after the Union Government banned RMG operations.

• Global operations were conducted from India using the same platform and single application, without regulatory compliance.

• Funds were diverted from the Indian entity to overseas jurisdictions under the guise of foreign investments.

• USD 55 million (₹489.90 crore) has been parked in the US in the bank account of WinZO US Inc., identified as a shell company, as all operations and control remain in India.

Legal Provisions Discussed:

• Prevention of Money Laundering Act, 2002 (Sections 3, 4, 17, 17(1A)) – Offences relating to money laundering; search, seizure, and freezing of proceeds of crime.

• Relevant FIR sections – Involving cheating, impersonation, and fraud relating to online gaming operations.

Status of the Case:

• Both accused are presently in ED custody until 06.12.2025.

• The Directorate continues to investigate the money trail, overseas fund diversion, and unlawful RMG operations.

• Further investigation is ongoing.

Citation: ED Press Release – 28 November 2025

Case: Directorate of Enforcement v. Directors of M/s WinZO Games Pvt. Ltd.

Authority: Directorate of Enforcement (ED), Bengaluru Zonal Office

Date of Action: 26–27 November 2025

Court: Hon’ble Principal City Civil & Sessions Judge, Bengaluru (CCH-1)

Statute Involved: Prevention of Money Laundering Act (PMLA), 2002