The Enforcement Directorate has cracked down on online gaming company WinZO and arrested its founders, Saumya Singh Rathore and Paavan Nanda, in connection with a money laundering case, officials said on Thursday.
According to news agency PTI, both were produced before a local court in Bengaluru on the same night and the court remanded them to one-day custody. They are expected to be brought before the court again for a detailed order, according to officials.
Read also WinZO founder Saumya Singh Rathore, Paavan Nanda arrested by ED
Here’s everything you need to know about the WinZO money laundering case in 10 points:
1. ₹505 million frozen: The arrest came days after the ED said it had frozen collective deposits worth approx ₹523 million online gaming companies WinZO and Gameskraft.
Alleged proceeds from criminal activity worth approx ₹505 million “owned” WinZO Games were frozen under Prevention of Money Laundering Act (PMLA)ED said in a statement released on November 24.
The agency added that “these deposits are held in bank accounts in the form of bonds, fixed deposits and mutual funds.”
The ED reportedly alleged that the platforms were “holding” funds worth crores of rupees, which should ideally be returned to players after India recently banned real money gaming.
2. Why did ED launch a probe against WinZo? The ED informed on November 24 that it has initiated an investigation based on the FIRs filed against M/s WinZO Games Pvt. Ltd and others “based on cheating, account blocking, impersonation, misuse of PAN etc.
The FIRs also stated that the complainants’ KYC was misused by WinZO and others and “complainants have suffered substantial losses due to fraudulent activities and cheating by WinZO and others”.
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The ED was quoted as saying, “Even after the ban on RMGs (Real Money Games) by the Union Government (wef 22/08/2025), the amount ₹43 million is still held by the company with no refund to players/customers.”
3. According to the report, the federal investigation agency conducted multiple searches in Delhi, Bengaluru and Gurugram between November 18 and 22 in a money laundering probe against the platforms’ parent companies – Nirdesa Networks Pvt. Ltd. (NNPL), Gameskraft Technologies Pvt. Ltd. (GTPL) and WinZO Games Pvt. Ltd – and their promoters. These platforms offered players online gaming services for real money.
Read also | Who is Saumya Singh Rathore? WinZO co-founder arrested by ED in Bengaluru
4. The ED accused WinZO of “engaging in criminal activities and unscrupulous practices as customers were forced to play with algorithms without being aware of the fact that they are playing with software and not with people in real money games,” PTI reported.
5. The ED has reportedly said in its statement that WinZO operates Real Money Games (RMG) in countries like Brazil, USA and Germany etc. from India (on the same platform used by the Indian entity).
The agency claimed to have found that WinZO’s global operations were conducted within a single application, meaning they were hosted from an Indian platform.
Read also | Who is Paavan Nanda? ED arrests WinZO co-founder days after raids
6. “It was also found that the funds of the Indian entity were diverted to the US and Singapore under the guise of overseas investments.
“Funds worth US$55 million (approx ₹489.90 crore) was parked in their bank account (WinZO) in the US, which is a shell company as all operations and day-to-day business activities and operation of bank accounts were done from India,” the ED said.
7. The ED also said that WinZO prevented or restricted withdrawals of money held by customers in wallets and generated alleged illicit funds in the form of stakes deposited and lost by genuine customers through “reckless” use of algorithms/software.
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8. A WinZO spokesperson told PTI in a statement that the company is “fully cooperating with the investigating agency and will continue to support the process”.
“Fairness and transparency are at the core of how WinZO designs and operates its platform. Our goal remains to protect our users and ensure a safe and trusted environment,” WinZO said in a statement.
9. Who is Saumya Singh Rathore? Saumya Singh Rathore, arrested in a money laundering case, is the co-founder of WinZO. She and another accused, Paavan Nanda, were earlier colleagues at Zo Rooms.
Saumya Singh Rathore has emerged as one of the youngest new additions to the In Kotak Private Banking Hurun Leading Wealthy Women List 2021, with a rich ₹520 million crowns.
10. Who is Paavan Nanda? Paavan Nanda, 38, is an Indian entrepreneur and co-founder of WinZO. Before founding WinZO in 2018, he helped build Zostel, a backpacker hostel chain, and its sister business ZO Rooms, which aggregates budget hotels.
