1 week ago
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Continuing a probe into the multi-crore Gameskraft Technologies scam, the Directorate of Enforcement (ED) conducted extensive raids over the past week, leading to the seizure and freezing of movable assets worth over ₹526 crore and the arrest of three company directors.
The searches were carried out by the ED’s Bengaluru Zonal Office between May 7 and May 13, at multiple office and residential premises linked to Gameskraft Technologies Pvt. Ltd. and its senior officials in Bengaluru and the National Capital Region (NCR).
According to an official release, the operation resulted in seizures of bank balance, payment gateway balance, mutual funds, bonds and fixed deposits. The agency also seized bullion, gold and diamond jewellery weighing around 2.3 kg and valued at nearly ₹3.5 crore, along with ₹11 lakh in cash.
The investigation was initiated on multiple FIRs registered across various States under the Indian Penal Code (IPC), 1860. The ED alleged that Gameskraft, which operates online real-money rummy platforms, has a nationwide user base of nearly three crore.
Investigators alleged that many users were from States where online real-money gaming is prohibited or restricted, including Telangana, Andhra Pradesh, and Tamil Nadu. The agency alleged that the company manipulated geolocation systems to provide access to its gaming platforms in these States.
According to the officials, the company promised users that its gaming ecosystem was transparent, secure and free from BOTs. However, investigators alleged that automated BOT accounts were deployed to compete against genuine users without their knowledge or consent.
The agency further alleged that users were initially lured through small winnings and smooth withdrawal processes to build trust. Once users began participating in games with higher-stakes, BOTs were allegedly introduced, causing substantial financial losses.
The ED estimated that users collectively suffered losses amounting to nearly ₹1,154 crore owing to the alleged BOT-driven manipulation. The agency stated that evidence gathered included grievances and complaints received through the company’s application and customer support channels. These complaints allegedly pointed to severe financial distress among users, particularly those from economically weaker sections.
According to the ED, some complaints also referred to extreme psychological distress and suicidal tendencies linked to heavy financial losses incurred on the platform.
The ED has arrested three directors — Prithvi Raj Singh, Vikas Taneja, and Deepak Singh Ahlawat — under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
Investigators alleged that the proceeds of the crime were laundered through investments in foreign entities, dividend distributions, mutual funds, bonds, and investments in movable and immovable properties
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