Daijiworld Media Network – New Delhi
New Delhi , Nov 27: The Enforcement Directorate (ED) on Wednesday arrested WinZO Games Pvt. Ltd. directors Saumya Singh Rathore and Paavan Nanda from Bengaluru in connection with an online betting probe. The accused were produced before the home office of a judge, who granted custody to the agency and directed that they be presented again on Thursday for detailed arguments on the ED’s remand application.
The ED had conducted search operations at four locations in Delhi and Gurgaon between November 18 and 22, seizing assets worth approximately Rs 505 crore. The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. WinZO provides real-money gaming services through its mobile application.
“During the search, proceeds of crime possessed by WinZO Games Pvt. Ltd. worth around Rs 505 crore have been frozen in the form of bank balances, bonds, FDRs, and mutual funds under Section 17(1A) of the PMLA,” the agency stated.
The investigation was initiated based on FIRs filed against WinZO and others on charges of cheating, blocking of accounts, impersonation, misuse of PAN details, and related offences. Complaints indicated that users’ KYC details were misused, resulting in substantial financial losses due to fraudulent activities.
The probe revealed that WinZO was operating real-money games in foreign countries including Brazil, the U.S., and Germany from India using the same platform as the domestic entity. Even after the government banned online betting on August 22, the company allegedly retained Rs 43 crore without refunding users.
Investigators also alleged that WinZO allowed customers to play against algorithms/software instead of real players without disclosure, restricted or delayed withdrawals, and generated proceeds of crime through lost bets. Funds from the Indian entity were allegedly diverted to the U.S. and Singapore under the pretext of overseas investments.
About USD 55 million (Rs 489.90 crore) was reportedly parked in U.S. bank accounts under WinZO US Inc., described by the ED as a shell company, while all operations and account management were handled from India.