Enforcement Directorate on Gaming Fraud and PMLA Investigation.

Headnote:

The Enforcement Directorate (ED), Bengaluru Zonal Office, conducted searches between 18–22 November 2025 under the Prevention of Money Laundering Act, 2002 (PMLA) at offices and residences of directors of M/s Nirdesa Networks Pvt. Ltd. (NNPL) and M/s Gameskraft Technologies Pvt. Ltd. (GTPL), following allegations of large-scale fraud on the Pocket52 gaming platform. Investigations revealed manipulation of game outcomes, collusion among players, technical glitches, withdrawal restrictions, and non-transparent practices, resulting in user losses exceeding Rs. 3 Crore. Assets and data were seized, and eight bank escrow accounts holding Rs. 18.57 Crore were frozen under Section 17(1A) of the PMLA. The investigation is ongoing.

Background:

1. FIR lodged by Karnataka Police alleged fraudulent practices by Pocket52, operated by NNPL, including rigged algorithms, removal of responsible gaming features, and non-payment to users.
2. Despite the ban on Real Money Games under the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act), the company retained over Rs. 30 Crore in escrow accounts without refunding users.
3. ED initiated searches and seizures to secure electronic devices and voluminous data from company premises and director residences.

Observations by ED:

1. Evidence indicates intentional exploitation of users and lack of compensatory measures for losses.
2. Multiple complaints corroborated manipulation and non-transparent operations.
3. Escrow accounts suspected of containing proceeds of crime have been frozen.
4. Investigation under PMLA continues to identify the extent of fraudulent and money laundering activities.

Legal Provisions Discussed:

1. Prevention of Money Laundering Act, 2002 (PMLA) – Sections 17(1A), powers to attach/freeze assets suspected to be proceeds of crime.
2. Promotion and Regulation of Online Gaming Act, 2025 (PROG Act) – Ban on Real Money Games and obligations of operators.

Decision/Action Taken

1. Searches conducted at offices and residences of directors/founders.
2. Electronic devices and data backups seized.
3. Eight bank accounts frozen (approx. Rs. 18.57 Crore).
4. Further investigation ongoing.

Citation: 2025:ED-BLR:1438155

Case/Investigation: Enforcement Directorate v. Nirdesa Networks Pvt. Ltd. & Ors.

Court/Authority: Directorate of Enforcement, Bengaluru Zonal Office

Date of Press Release: 24 November 2025