BENGALURU: The Directorate of Enforcement (ED), Bengaluru zonal office, conducted search and seizure operations at the office and residential premises of Gameskraft Technologies Pvt Ltd, its directors and some key employees in Bengaluru and NCR between May 7 and 13 under the PMLA, 2002.
“The searches resulted in the seizure of incriminating documents, electronic records, and freezing of movable assets including bank balances, payment gateway balances, mutual funds, bonds and fixed deposits, valued at approximately Rs 526.49 crore. The searches also resulted in the seizure of 2.30kg bullion/gold/diamond jewellery worth around Rs 3.50 crore and Rs 11 lakh cash,” the ED stated.
The investigation was initiated based on FIRs registered in multiple states for cheating offences under IPC. “Gameskraft Technologies is into the business of hosting rummy games and tournaments, a Real Money Game (RMG) through its mobile application under various brands such as RummyCulture, RummyPrime, Playship and RummyTime, including a B2B mobile application RummyCorner,” the central agency added.
“A large user base is from states where online RMG is banned, such as Telangana, Andhra Pradesh Tamil Nadu etc. The company tampered with their geo location. For providing these RMG services, the company charges certain percentage on the stake/wagering amounts of the users, in the form of commission, which ranges from 10% to 15%,” the ED stated.
“The company also assured its users that its gaming platform is free from any BOTs; is transparent and secure. The company has indulged in unscrupulous practices in hosting/conducting the online rummy game through its platform, by subjecting users to play against BOTs, without their knowledge, due to which users incurred huge financial losses and also mental agony,” added the agency.
The probe revealed that users were initially lured with small rewards and made to win, even being allowed to withdraw small winnings. “Three company directors -- Prithvi Raj Singh, Vikas Taneja and Deepak Singh Ahlawat -- were arrested under Section 19 of PMLA. Investigation revealed that Proceeds of Crime derived by the company and its directors were laundered through investment in foreign entities, dividend payment to its shareholders, mutual funds, bonds and investment in movable /immovable properties,” ED said.