The Enforcement Directorate arrested WinZO’s co founders Saumya Singh Rathore and Paavan Nanda in Bengaluru on Wednesday night under the sections of Prevention of Money Laundering Act (PMLA). The duo was called into the ED’s office for questioning over alleged money laundering late night, and they were both taken into custody after the interrogation. part of its money laundering probe into the online real-money gaming industry. Officials stated to PTI that the arrests were made in Bengaluru on Wednesday after hours of questioning at the agency’s zonal office.
Founders sent to one day custody
Both the founders were presented before a Bengaluru court the same night and were granted one-day custody. They are likely to be produced again for further orders once the agency seeks an extended remand.
Rs 43 crore under ED scanner – What are the charges?
The ED had on Monday said that about Rs 43 crore belonging to players was still being held by WinZO, even though this money should have been returned after India banned real-money gaming. Last week, the ED searched the offices of WinZO, Gamezkraft, and their promoters under the Prevention of Money Laundering Act (PMLA).
The agency accused WinZO of running real-money games where players were matched against computer algorithms instead of real people, without being clearly told this. It also said WinZO continued to run real-money games in countries like Brazil, the US, and Germany through the same platform managed from India.
According to the ED, even after the Union government banned real-money games on August 22, 2025, WinZO did not return Rs 43 crore owed to players. The agency said it had frozen bonds, fixed deposits, and mutual funds worth Rs 505 crore owned by WinZO under the PMLA.
Responding to the allegations, a WinZO spokesperson said the company operates with fairness and transparency and focuses on keeping its users safe. The company also said it follows all laws.
The ED further alleged that WinZO blocked or restricted players from withdrawing the money in their wallets and earned illegal revenue through bets lost by real customers while using unfair software or algorithms.
Investigators have accused WinZO of running games using software-driven algorithms instead of human opponents, without disclosing this to its users. The ED has alleged that the company continued to offer real-money games abroad, including in the US, Brazil, and Germany, through the same India-based platform.
As per the agency, bonds, fixed deposits, and mutual funds worth Rs 505 crore held by WinZO have been frozen. It further claimed that the firm restricted customer withdrawals and created questionable revenue from player losses by using undisclosed algorithms.
WinZO’s reaction
WinZo, in a statement, has rejected the allegations, stating that platform is built on “fairness and transparency”. The firm stated that it complies with all applicable laws and prioritising safety and trust.
The ED has also alleged diversion of funds overseas. It has been mentioned that USD 55 million (about Rs 490 crore) was parked in a US-based shell entity who operations were effectively operated from India. The agency has made similar allegations against Gamezkraft.
Searches conducted across cities
A report by The Indian Express says that a wider crackdown last week involved searches across Delhi, Gurgaon and Bengaluru conducted between November 18 and 22. The investigation, it said, forms a broader probe into alleged fraud, violation of the nationwide ban on real-money gaming and algorithmic manipulation. The news outlet reported that the ED’s operations covered not just WinZo but also Pocket52. Officials have also seized electronic devices and backed up large volumes of data during searches.