Gameskraft Founders Arrested in Money Laundering Case

The Enforcement Directorate (ED) has detained the three founding members of Gameskraft amid an investigation into alleged money laundering activities associated with the company’s online gaming services, as reported by CNBC-TV18 through official channels. The co-founders being held include Deepak Singh, Prithvi Raj Singh, and Vikas Taneja. This action has been reportedly enforced under the Prevention of Money Laundering Act (PMLA).

Details of the Investigation

According to the CNBC-TV18 report, the ED executed searches across various locations in Delhi-NCR and Karnataka as part of its ongoing inquiry into suspected financial discrepancies linked to the company’s real-money gaming platforms.

Allegations Against Gameskraft

The investigation relates to claims of deceit and unlawful financial gains through the online gaming applications operated by Gameskraft, including RummyCulture and RummyTime. Additional reports have indicated that the agency had previously frozen approximately Rs 18.57 crore in escrow accounts associated with the matter.

About Gameskraft

Established in 2017, Gameskraft focuses on skill-based gaming platforms, prominently featuring rummy and various casual games. The Bengaluru-based firm has also contributed to the wider discussions around the taxation and regulation of online gaming entities in India.

Regulatory Scrutiny in the Online Gaming Sector

The arrests occur during a period of rising regulatory inspection of the online gaming sector by enforcement and tax bodies. In recent years, multiple gaming and betting platforms have come under scrutiny for alleged breaches related to money laundering, Goods and Services Tax (GST) payments, and foreign exchange regulations.

At the time of publishing this article, the company had not released any comprehensive public statement regarding the arrests.