Enforcement Directorate Targets Gameskraft Technologies in Money Laundering Probe
The Enforcement Directorate (ED) has provisionally attached movable and immovable assets amounting to Rs 442 crore as part of its investigation into money laundering linked to Gameskraft Technologies and its online gaming platform RummyCulture, as stated in a press release from the ED. The provisional attachment order was issued by the ED’s Bengaluru Zonal Office on September 25 under Section 5(1) of the Prevention of Money Laundering Act (PMLA), 2002.
Details of Attached Assets
The assets attached include balances from fixed deposits, commercial shops, a villa, and several residential properties. These assets are registered under the names of family members, private family trusts, and entities associated with shareholders of Gameskraft Technologies, as noted by the ED. Following this recent action, the cumulative value of assets that have been attached, frozen, and seized in relation to the case has reached approximately Rs 2,843 crore, according to the agency.
Background of the Investigation
The ED’s investigation into money laundering began following several FIRs filed in Telangana, related to alleged cheating offences under the Bharatiya Nyaya Sanhita, 2023. Gameskraft Technologies and its associated entity RummyTime Technologies offered online real-money games, specifically rummy games and tournaments, through mobile applications such as RummyCulture, RummyPrime, Playship, and RummyTime.
User Statistics and Allegations
As reported by the ED, these platforms boasted a user base of around 3 crore individuals across India. The agency alleged that a notable portion of these users resided in Telangana, Andhra Pradesh, and Tamil Nadu, regions where online real-money gaming has been prohibited. Furthermore, the ED contended that the companies took platform commissions between 10% to 15% on users’ staking or wagering amounts.
Additionally, it was claimed that automated programmes, commonly referred to as bots, were used against users without their knowledge or consent, despite previous claims that such interventions were non-existent on the platforms. The agency asserted that the implementation of bots led to financial losses for users while simultaneously generating illicit proceeds for the companies involved. According to the ED, the money derived from these activities was subsequently obscured through dividend payments, share buybacks, and investment in various financial instruments and properties.