Enforcement Directorate Moves Against Gameskraft Leadership in ₹1,000 Crore Betting Fraud Case Under Prevention of Money Laundering Act

The Enforcement Directorate (ED) has taken decisive legal action against Gameskraft Technologies, one of India’s prominent skill based gaming companies, by arresting its three co-founders — Deepak Singh, Prithvi Raj Singh, and Vikas Taneja — under Section 19 of the Prevention of Money Laundering Act (PMLA). The development marks a significant escalation in regulatory enforcement within India’s rapidly expanding online gaming sector.

The Arrests and Investigation

The ED carried out coordinated operations across two major regions. Deepak Singh and Prithvi Raj Singh were taken into custody from the Delhi-NCR region, following which the agency secured transit remand to produce them before a Bengaluru court. Vikas Taneja was arrested separately in Bengaluru and remanded to five days of ED custody until May 13, 2026. Prior to the arrests, the agency conducted searches at 17 locations spanning Delhi-NCR and Karnataka, during which key documents were seized for further examination.

The money laundering case was registered against Gameskraft Technologies and associated entities based on multiple FIRs filed across different states, alleging cheating, fraud and other offences linked to the company’s online real money gaming platforms. Significantly, some of these FIRs relate to suicides committed by individuals who allegedly suffered financial losses after being duped through the platforms. The ED has alleged that the platforms manipulated gameplay, cheated users through deceptive practices, and laundered proceeds of crime through bogus business expenditure entries and cash transactions.

About Gameskraft

Founded in 2017 and headquartered in Bengaluru, Gameskraft operates multiple gaming platforms including RummyCulture, RummyTime, and Gamezy, offering online rummy, fantasy sports, and other skill based gaming formats. In a related earlier action, the ED froze eight escrow bank accounts linked to Gameskraft and associated entities holding approximately ₹18.57 crore, alleging the funds represented suspected proceeds of crime.

A Sector Under Mounting Scrutiny

The arrests do not occur in isolation. Gameskraft had earlier come under scrutiny in a separate high-profile GST dispute involving an alleged tax demand exceeding ₹21,000 crore, when the Directorate General of GST Intelligence issued a notice alleging that the company’s online gaming operations amounted to betting and gambling activities liable for 28 per cent GST. Further, Parliament recently passed the Promotion and Regulation of Online Gaming Bill, 2025, which received Presidential assent and seeks to completely ban the offering, operating, or facilitating of online money games, irrespective of whether they are based on skill, chance, or both.

Conclusion

The Gameskraft case represents a critical inflection point for India’s online gaming industry. With enforcement agencies intensifying oversight, a landmark legislative framework now in place, and judicial scrutiny deepening, companies operating in this space face an environment that demands rigorous legal and financial compliance. The outcome of this case is likely to set important precedents shaping the industry’s regulatory landscape for years to come.

Also Read: Skyroot Aerospace Raises $60 Million, Emerges as India’s First Spacetech Unicorn With $1.1 Billion Valuation

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Vi Launches ‘Vi Edu+’ Prepaid Plans in Partnership with PhysicsWallah, Offering Bundled Academic Content for Competitive Exam Aspirants

Next Post

Zepto Advances Toward Public Listing as SEBI Grants IPO Clearance for $1 Billion Offering

Related Posts
Total
0
Share