ED attaches Rs 442 crore assets in RummyCulture money laundering case
The Bengaluru Zonal Office issued the provisional attachment order on September 25 under the Prevention of Money Laundering Act (PMLA), 2002. The attached assets include fixed deposits, commercial shops, a villa and residential properties held in the names of family members, private family trusts and entities associated with shareholders of Gameskraft Technologies, the ED said in a news release.
The Enforcement Directorate (ED) has attached properties reportedly worth Rs 442.35 crore in an ongoing money laundering probe involving online gaming platforms. On September 25, the Bengaluru Zonal Office issued the provisional attachment order under the Prevention of Money Laundering Act (PMLA, 2002). The assets include fixed deposits, commercial properties, a villa and homes belonging to relatives and shareholders of Gameskraft Technologies, the ED revealed in a statement.
The investigation stemmed from multiple FIRs registered in Telangana over alleged cheating offenses under the Bharatiya Nyaya Sanhita, 2023, which are covered under PMLA.
Earlier searches at Gameskraft's offices and directors' residences in May and June led to the seizure of documents and electronic records. The platform operated through apps like RummyCulture, RummyPrime, Playship and RummyTime, attracting around 3 crore users nationwide. The ED alleged that users hailing from states where online real-money gaming is illegal, including Telangana, Andhra Pradesh and Tamil Nadu, faced financial losses due to the use of automated bots by the platforms.
The investigation also uncovered excessive marketing expenses of Rs 1,035 crore, bonuses, referral incentives and promotional rewards, along with withdrawal restrictions and offers encouraging users to convert balances into non-withdrawable "Game Cash."
Furthermore, the ED claimed that dormant users were targeted through cash credits, promotional campaigns and telemarketing calls to resume gaming. Proceeds were reportedly layered through dividend payments, share buy-backs, and investments in mutual funds, bonds, convertible notes and high-value properties. The total value of assets attached, frozen and seized now stands at approximately Rs 2,843 crore.
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