The Directorate of Enforcement (ED), Bengaluru Zonal Office, filed a Prosecution Complaint on January 23, 2026, before the Special Court under the Prevention of Money Laundering Act (PMLA) in Bengaluru in connection with alleged money laundering and cheating by online gaming company M/s Winzo Pvt. Ltd.
The ED has named Winzo Pvt. Ltd. as the main accused, along with its directors Paavan Nanda and Saumya Singh Rathore.
The prosecution complaint also includes the company's wholly owned subsidiaries-M/s Winzo US Inc. (USA), M/s Winzo SG Pte. Ltd. (Singapore), and the Indian entity M/s ZO Pvt. Ltd.
The investigation was initiated on the basis of multiple FIRs registered by the Bengaluru CEN Police Station and police authorities in Rajasthan, New Delhi, and Gurugram for offenses related to cheating under the Indian Penal Code.
Earlier, the ED conducted search and seizure operations on November 18, 2025, and December 30, 2025, at Winzo's office premises, the residence of one of its directors, and the office of its accounting firm. These searches led to 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 worth approximately Rs. 690 crore.
According to the ED, Winzo operates a real money gaming (RMG) platform through a mobile application offering over 100 games, with a claimed user base of around 25 crore, largely from Tier-3 and Tier-4 cities. The company charged users a commission on betting amounts and assured them that the platform was free of bots and fully transparent.
However, the investigation revealed large-scale manipulation of games. Analysis of game codebases, third-party developer agreements, and internal communications showed that until December 2023, the games were embedded with bots, AI, and algorithm-based profiles. Between May 2024 and August 2025, Winzo allegedly shifted to simulating historical gameplay data of dormant or inactive players and pitted these simulated profiles against real users without their knowledge or consent. These practices were allegedly concealed under misleading terms such as Engagement Play (EP), Past Performance of Player (PPP), and Persona.
The ED further stated that users were initially lured with small bonuses and easy wins, even being allowed to withdraw limited amounts to build trust. Once users began wagering higher amounts, harder or "winning" bots were systematically deployed, resulting in heavy losses. The investigation estimates that genuine users lost approximately Rs. 734 crore to such bot profiles. Restrictive withdrawal mechanisms allegedly blocked legitimate wins at higher stakes in several cases, forcing users to continue playing.
The agency also found that even after the Union Government imposed a ban on RMG, Winzo failed to return legitimate user winnings and deposits amounting to Rs. 47.66 crore. Overall, the ED has estimated that the company generated proceeds of crime worth Rs. 3,522.05 crore between FY 2021-22 and FY 2025-26 (as of August 22, 2025).
Evidence recovered from seized electronic devices indicated that the manipulative gaming practices caused severe financial distress among users, particularly those from economically weaker backgrounds, with reports of extreme mental distress and suicidal tendencies.
The ED further alleged that the proceeds of crime were laundered through shell companies created in the USA and Singapore. Around USD 55 million was transferred to foreign bank accounts under the guise of Overseas Direct Investment. Additionally, Rs. 230 crore was diverted to another subsidiary as purported loans without any legitimate business purpose. Attempts to divert an additional Rs. 150 crore through the ODI route were allegedly thwarted due to non-submission of mandatory audit and utilisation certificates.
In the prosecution complaint, the ED has stated that the accused knowingly generated, possessed, used, concealed, and attempted to project the proceeds of crime as untainted property, thereby attracting offenses under Section 3 read with Section 70, punishable under Section 4 of the PMLA, 2002.
Further investigation in the case is ongoing.
