New Delhi, Jan 25 (UNI) The Enforcement Directorate (ED), Bengaluru Zonal Office, on Sunday said that it has filed a chargesheet before a Special PMLA Court in a case registered against Winzo Pvt. Ltd.
The ED stated that the chargesheet names the company as the main accused, along with its Directors, Paavan Nanda and Saumya Singh Rathore, as well as its wholly-owned (100 per cent) subsidiaries, both foreign and Indian entities, namely Winzo US Inc. (USA), Winzo SG Pte. Ltd., and ZO Pvt. Ltd.
The ED initiated the PMLA investigation based on multiple FIRs registered by the Bengaluru CEN Police Station and police authorities in Rajasthan, New Delhi, and Gurugram for offences of cheating under the IPC, 1860.
Earlier, the ED conducted search and seizure operations multiple times at the office premises of Winzo, the residential premises of its Director, and the office of its accounting firm. These searches resulted in the seizure of incriminating documents and electronic records, and the freezing of movable assets including bank balances, payment gateway balances, mutual funds, bonds, fixed deposits, and cryptocurrency wallets, valued at Rs 690 crore.
The company, Winzo, is in the business of hosting Real Money Games (RMG) through its mobile application, offering more than 100 number-based games with a claimed user base of about 25 crore users, largely from Tier-3 and Tier-4 cities. For providing these RMG services, the company charges a certain percentage of the users’ betting amounts as commission. The company also assured its users that its gaming platform is free from any BOTs and is transparent and secure.
However, the investigation revealed that most RMGs were manipulated. Analysis of the game codebases, third-party developer agreements, and internal communications revealed that until December 2023, the RMGs were embedded with BOTs/AI/algorithmic profiles. During the period from May 2024 to August 2025, the company changed its modus operandi from code-based BOTs to simulating historical match-play data of dormant/inactive players against real users without their knowledge or consent.
To suppress and conceal these unscrupulous acts, the company deliberately referred to the use of BOTs and simulated players under misleading terminologies such as EP (Engagement Play), PPP (Past Performance of Player), and Persona.
The investigation further revealed that users were initially lured with small bonuses and made to win against easy BOTs, even being allowed to withdraw small winnings, thereby creating a false sense of trust. Once users began playing with higher betting amounts, Winning/Hard BOTs were deployed systematically, resulting in significant financial losses for the users.
Evidence gathered during the investigation revealed that genuine users lost to BOT profiles (both EP & PPP BOT plays), incurring losses amounting to approximately Rs 734 Crore. Furthermore, even genuine winnings at higher stakes were often blocked through restrictive withdrawal mechanisms, forcing users into continued gameplay.
It was also found that Winzo failed to return legitimate user winnings and deposits amounting to Rs 47.66 Crore, even after the union Government’s ban on RMGs.
In this manner, the company has generated total Proceeds of Crime amounting to Rs 3,522.05 Crore during the financial years 2021-2022 to 2025-2026 (as of August 22, 2025). Evidence from seized electronic devices also revealed that Winzo’s manipulative gaming structure caused severe financial distress to users (especially those from poor financial backgrounds), with some users reportedly experiencing extreme mental distress and even suicidal tendencies.
Furthermore, the investigation revealed that the proceeds of crime derived by the company were laundered through shell companies created in the USA and Singapore. Approximately USD 55 million was transferred to foreign bank accounts held in the name of these shell companies under the guise of Overseas Direct Investment. Additionally, an amount of Rs 230 Crore was diverted to another accused subsidiary company under the pretext of ‘Loans from Holding Company,’ without any legitimate business rationale.
Attempts were also made to divert an additional Rs 150 Crore of Proceeds of Crime via the ODI route; however, this could not be finalised due to the non-submission of mandatory audit and utilisation certificates.
In the Prosecution complaint, the ED has clearly established that the accused persons have knowingly generated, acquired, possessed, used, and concealed the Proceeds of Crime and attempted to project the same as untainted property. Accordingly, the offence of Money Laundering under Section 3, read with Section 70, punishable under Section 4 of the PMLA, 2002, has been made out against the above-mentioned accused persons.
Further investigation into the matter is ongoing.
