BENGALURU: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has seized bank accounts, FDs, mutual funds, bonds of Winzo Pvt. Ltd and its subsidiary, Zo Pvt Ltd, valued at Rs 590crore under Section 37A of the Foreign Exchange Management Act (FEMA), 1999, for contravention under Section 4 of FEMA, 1999.
Winzo was into the business of hosting Real Money Games (RMG)/gambling, offering more than 100 number games with a claimed user base of about 25 crore users. Winzo has made overseas direct investment to its foreign subsidiaries – Winzo US Inc, USA and Winzo SG Pte Ltd, Singapore, by acquiring foreign exchange to the tune of USD 54,255,010 (Rs 492crore), the central agency said in a press release.
Winzo has been conducting real-money gaming operations (online gambling) by offering games such as Bingo 2p, Bingo Turbo, Ludo, Snakes & Ladders, Mines, Solitaire, Spades and Black Jack etc, in Brazil, Germany and the United States through its US-based subsidiary, Winzo US Inc, USA. Winzo has parked its funds abroad under the guise of overseas direct investment, however, the entire gaming infrastructure for these overseas operations is shared and controlled from India.
The foreign entities do not have any regular employees or independent establishments to carry out their operations. The complete management and control of these entities, including day-to-day functioning, is exercised by directors and employees from India. Further, all accounting records, management of foreign bank accounts and related financial functions of the US and Singapore entities are handled from India. WinZO Singapore is earning a licensing fee from call-break games by licensing it to WinZO India, the release stated.
Further, ED investigation revealed that Winzo Pvt Ltd also incorporated 100% subsidiary in the USA and Singapore, which are into gambling/real money games, which are prohibited as per Rule 19 (1) (b) of the Foreign Exchange Management (Overseas Investment) Rules, 2022. Further, foreign subsidiaries of Winzo games are into non bonafide business activity (not permissible under any law in force in India) in contravention of Rule 9(1) of the FEM (Overseas Investment) Rules, 2022.
Online games have been banned in India by the Promotion and Regulation of Online Gaming Act, 2025 (PROG) Act, 2025 and therefore Winzo could not have made overseas investments or continued investments after enforcement of online gaming ban in India. Winzo is holding foreign currency and foreign income generated abroad in bank accounts of its USA and Singapore subsidiaries from prohibited activities in contravention of Section 4 of FEMA, 1999, to the extent of Rs 590 crore, the ED said.
