BENGALURU – The Directorate of Enforcement (ED) has escalated its crackdown on the online gaming sector, provisionally attaching movable properties worth USD 55.69 Million (approx. ₹505 Crore) held in foreign bank accounts linked to M/s. Winzo Pvt. Ltd.
The assets, located in the USA and Singapore, were maintained under overseas shell companies—Winzo US Inc. and Winzo SG Pte. Ltd. According to the ED, these entities were controlled by the company’s directors, Paavan Nanda and Saumya Singh Rathore.
The “BOT” Scandal: How the Alleged Fraud Worked
The Bengaluru Zonal Office’s investigation reveals a sophisticated system designed to siphon funds from unsuspecting players. Following searches conducted in late 2025, evidence suggests Winzo engaged in “unscrupulous practices” by forcing customers to compete against AI-driven BOTs and algorithms (referred to internally as PPP/EP/Persona).
Crucially, users were led to believe they were playing against real humans in real-money games. The ED alleges that:
Rigged Gameplay: Customers were unknowingly matched against BOTs.
Withdrawal Blocks: The company restricted or prevented users from withdrawing their wallet balances.
Forced Retention: These restrictive environments induced users to play more matches, eventually exhausting their deposits.
INR 3,522 Crore Generated as ‘Proceeds of Crime’
The financial scale of the case is staggering. The ED has identified ₹3,522.05 Crore as “Proceeds of Crime” generated between the financial years 2021-22 and 2025-26.
The revenue was primarily derived through “Rake Commissions”—a fee charged by the platform for every match played. By using BOTs to ensure constant gameplay and “appropriating” user deposits through repeated matches, the company systematically converted player funds into corporate revenue.
“A part of the direct Proceeds of Crime was taken out of India to the USA and Singapore under the garb of overseas investments,” the ED stated, noting that while the funds were parked abroad, all day-to-day operations were managed from India.
Legal Status and Total Seizures
This latest attachment brings the total value of frozen or attached assets in this case to approximately ₹1,194 Crore.
A formal Prosecution Complaint was filed before the Special Court for PMLA in Bengaluru on January 23, 2026. As the ED continues its probe, the case serves as a landmark warning for the digital gaming industry regarding transparency and the use of AI in real-money ecosystems. Further investigation is under progress