Bengaluru, Sep 27 (IANS) The ED attached movable and immovable properties amounting to Rs 442.35 crore in an action against a company operating online Real Money Games (RMGs), particularly online rummy games and tournaments, through mobile applications, an official said on Sunday.
The company and its associate entity were operating games under various brands including RummyCulture, RummyPrime, Playship and RummyTime, and the platforms had a user base of around three crore users across the country, the ED said.
The Enforcement Directorate (ED), Bengaluru Zonal Office, attached assets including balances in fixed deposits, commercial shops, a villa, and multiple residential immovable properties held in the names of the family members, private family trusts, and various associated entities of the shareholders of Gameskraft Technologies.
Investigation conducted so far has revealed that Gameskraft Technologies and RummyTime Technologies were engaged in operating online Real Money Games (RMGs), said the ED.
The properties were attached under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the case of RummyCulture App and Others, the ED said.
The Provisional Attachment Order (PAO) No. 40/2026 dated September 25 was issued under Section 5(1) of the PMLA, 2002, it said.
The ED initiated the investigation under the provisions of the PMLA, 2002, based on multiple FIRs registered in Telangana for offences of cheating under the provisions of the Bharatiya Nyaya Sanhita, 2023, which are scheduled offences under the PMLA, said the ED statement.
Earlier, the ED conducted search and seizure operations under Section 17 of the PMLA, 2002 at the office premises of Gameskraft Technologies and the residential premises of its directors and key employees during May 7 to 14 and also on June 20 to 21.
These searches resulted in the seizure of several incriminating documents, digital devices and electronic records, which have formed crucial evidence during the course of the investigation, the ED said.
The investigation revealed that a significant number of users of the apps of these companies were located in the states where online real-money gaming has been banned, including Telangana, Andhra Pradesh and Tamil Nadu, the ED said.
These companies have derived substantial revenues by charging platform commissions ranging from 10 per cent to 15 per cent on the staking/wagering amounts deposited by users, said the ED.
Investigation revealed that while assuring users that the gaming platforms were transparent, fair and free from automated players (BOTs), these companies have deployed BOTs (automated programmes/algorithms) against the gullible users without their knowledge or consent, the ED said.
The use of BOTs has resulted in substantial financial losses to the users while generating Proceeds of Crime for the companies, it said.
Investigation revealed that the Proceeds of Crime generated through the above activities were subsequently layered and integrated through payment of dividends and buy-back of shares to shareholders, said the ED.
These proceeds were concealed in the form of investments in mutual funds, bonds, convertible notes, equity shares, movable assets and high-value immovable properties, including those held through family trusts and associated entities, thereby projecting them as untainted properties, the ED said.
Earlier, during the search, movable assets valued at Rs 495 crore were frozen under the provisions of Section 17(1A) of the PMLA, 2002, along with cash amounting to Rs 11 Lakh and gold/diamond jewellery, including bullion weighing 2.30 kgs were seized, and a provisional attachment order was issued attaching properties to the tune of Rs 1,906 crore, the ED said.
The total value of Proceeds of Crime attached, frozen and seized during the investigation so far stands at Rs 2,843 crore, said the Central probe agency.
–IANS
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