From FIRs to ₹2,843 Crore: Key Developments in ED’s Gameskraft-RummyCulture Probe

The Enforcement Directorate has attached fresh assets worth Rs 442.35 crore in its money laundering investigation against online gaming company Gameskraft Technologies Pvt Ltd and its app RummyCulture, taking the total value of assets attached, frozen and seized in the case to Rs 2,843 crore.

The agency said a provisional attachment order was issued on September 25 under the Prevention of Money Laundering Act (PMLA). The properties include fixed deposits, commercial shops, a villa and several residential properties held in the names of family members, private family trusts and entities associated with Gameskraft shareholders.

Gameskraft Technologies and RummyTime Technologies operated online real-money games through mobile applications under brands including RummyCulture, RummyPrime, Playship and RummyTime, the ED said. Their platforms had around 3 crore users across the country.

The ED alleged that a significant number of users were in states where online real-money gaming was banned, including Telangana, Andhra Pradesh and Tamil Nadu. It also alleged that the companies used BOTs, or automated programmes and algorithms, against users without their knowledge or consent.

According to the agency, the platforms represented themselves as transparent, fair and free from automated players. The ED alleged that the use of BOTs caused financial losses to users while generating proceeds of crime for the companies.

The agency further alleged that the companies used practices that encouraged repeated wagering and generated proceeds through platform commissions. It said the companies earned revenue through commissions linked to users’ wagering on the platforms.

The latest attachment follows earlier action in the case. In July, the ED said it had provisionally attached properties valued at about Rs 1,906 crore belonging to Gameskraft, its shareholders and associated entities. The agency had earlier frozen movable assets worth about Rs 526.49 crore and seized Rs 11 lakh in cash and 2.30 kg of gold, diamond jewellery and bullion valued at about Rs 3.50 crore during searches in Bengaluru and the National Capital Region.

The ED said its investigation was initiated on the basis of multiple FIRs registered by law-enforcement agencies. The agency has alleged that proceeds generated through the gaming operations were laundered through various investments and assets. The allegations are part of an ongoing investigation.