HYDERABAD: The Directorate General of GST Intelligence (DGGI), Hyderabad zonal unit, has arrested Pankaj Kumar, founder and director of Adsum Advisory Service, for his alleged role in facilitating illegal online gaming operations involving transactions estimated at Rs 13,000 crore, through fraudulent KYC verification of shell entities linked to payment systems.
In a release issued on Thursday, the DGGI said evidence collected during the investigation pointed to an organised syndicate operating illegal online gaming websites with the support of associated fintech companies, including payment aggregators, payment gateways and third-party technology service providers.
Officials alleged that Pankaj was among the key persons involved in carrying out fraudulent KYC verification on behalf of RBI-regulated entities.
According to the DGGI, despite being the director of a company entrusted with KYC verification, Pankaj Kumar failed to undertake proper risk profiling of customers based on ownership.
This, officials said, enabled the onboarding of shell entities for UPI integration, which was used for the flow of funds linked to online gaming activities. Investigators further alleged that he was a beneficiary of the illegitimate proceeds generated by the syndicate.
Officials noted that the gross valuation of the online gaming sector in India in 2025 is estimated at about USD 23 billion (around `2 lakh crore). As part of a wider crackdown, the DGGI has initiated action against several online gaming syndicates and associated fintech firms, frozen bank accounts amounting to around Rs 100 crore, and arrested individuals described as key operators.
Further probe on.