BENGALURU: The Enforcement Directorate (ED), Bengaluru Zonal Office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA) against online gaming company Winzo Private Limited, its directors, and its Indian and overseas subsidiaries, alleging illegal laundering of proceeds of crime amounting to Rs 3,522.05 crore. The complaint has been submitted before a special PMLA court, the agency said in an official statement.
According to the ED, the prosecution complaint was filed on Friday, naming Winzo Private Limited as the principal accused along with its directors Pawan Nanda and Saumya Singh Rathore. The agency has also arraigned Winzo’s wholly owned subsidiaries—Winzo US Inc. (United States), Winzo SG Private Limited (Singapore), and ZO Private Limited—in the case.
The accused have been charged under Sections 3, 4, and 70 of the PMLA. The ED has alleged that the company and its directors knowingly generated, concealed, possessed, and projected the proceeds of crime as untainted assets, thereby violating provisions of the anti-money laundering law.
The investigation was initiated following multiple FIRs registered by the Bengaluru Central Crime Branch (CEN) and law enforcement agencies in Rajasthan, Delhi, and Gurugram. These FIRs were filed under various sections of the Indian Penal Code pertaining to cheating and fraud, which were treated as scheduled offences under the PMLA.
As part of the probe, the ED conducted extensive search and seizure operations on November 18 and December 30 at Winzo’s corporate offices, the residence of one of its directors, and the premises of its chartered accountant firm. During the raids, assets worth approximately ₹690 crore were seized or frozen. These included bank balances, payment gateway funds, mutual fund investments, bonds, fixed deposits, and cryptocurrency wallets, the agency said.
According to the ED, Winzo operates an online gaming platform offering more than 100 games and claims to have a user base of nearly 25 crore players, predominantly from Tier-III and Tier-IV cities. The agency alleged that the platform used deceptive gaming practices to lure users into betting real money.
The investigation revealed that users were initially attracted through small bonuses and easy early wins to build trust. Subsequently, the platform allegedly deployed advanced bot profiles that made it increasingly difficult for genuine users to win. As a result, real users are estimated to have lost around Rs 734 crore to these bot-controlled profiles, the ED claimed.
The agency further stated that even when users managed to secure high-value winnings, withdrawals were restricted through complex and delayed payout mechanisms. In several cases, legitimate winnings were either blocked or not refunded.
The ED has also alleged that Winzo failed to refund user deposits worth Rs 47.66 crore even after certain gaming activities were prohibited by the central government. The probe revealed that between the financial years 2021–22 and 2025–26, the company generated proceeds of crime amounting to Rs 3,522.05 crore.
A significant portion of the alleged proceeds was illegally siphoned abroad through shell companies based in the United States and Singapore, the ED said. About USD 55 million was remitted overseas under the guise of foreign direct investment (FDI). Additionally, Rs 230 crore was transferred to group entities as purported loans.
The agency also revealed that attempts were made to transfer an additional ₹150 crore to overseas entities; however, these transactions failed due to the non-submission of mandatory statutory documents.
The ED said the investigation has highlighted systematic financial manipulation, cross-border fund diversion, and deliberate misuse of digital gaming platforms for unlawful enrichment. Further investigation into the role of foreign entities, financial intermediaries, and associated individuals is ongoing.
