The Bangalore Zonal Authority in Bangalore on Thursday, February 19, seized bank accounts, fixed deposits, mutual funds, bonds of WinZo and its subsidiary Zo private limited worth Rs. 590 crore under Section 37A of the Foreign Exchange Management Act (FEMA), 1999 for violation of Section 4 of FEMA, 1999, the agency said in a press release.
Earlier in the day, the probe had attached a balance in foreign bank accounts held in the US and Singapore amounting to US$55.69 million ( ₹505 crore) held in the names of overseas shell companies in the Winzo App case, ANI reported.
ED Bengaluru Regional Office attached these movable properties held in the names of overseas shell companies Winzo Pvt Ltd, Winzo US Inc, USA and Winzo SG Pte Ltd, Singapore; operated and controlled by Paavan Nanda and Saumya Singh Rathore. Also read | ED chargesheets online gaming app WinZO, claims players were cheated ₹734 cr using bots
The investigating agency further said that Winzo had made foreign direct investment in its foreign subsidiaries – Winzo US Inc, USA and Winzo SG PTE Ltd, Singapore by earning foreign exchange amounting to USD 54,255,010 (equivalent ₹492 million crowns).
In a statement, the ED said, “Winzo operates real money gaming operations (online gambling) by offering games such as Bingo 2p, Bingo Turbo, Ludo, Snakes & Ladders, Mines, Solitaire, Spades and Black Jack etc. in Brazil, Germany and the United States through its US subsidiary Winzo Abroad – M/s has parked its Winzo USA funds abroad – M/s Overseas Direct Investment, however the entire gaming infrastructure for these overseas operations is shared and managed from India.”
“The ED investigation further revealed that Winzo Pvt ltd has also incorporated 100% subsidiary in USA and Singapore which are engaged in gambling/real money games which are prohibited under Rule 19 (1) (b) of Foreign Exchange Management (Overseas Investment) Rules 2022. Winzo’s foreign gaming subsidiaries under Act are not permitted in India under Bonafide Act. Violation of rule 9(1) of the FEM (Overseas Investment) Rules, 2022.’
It reads: “Online gaming was banned in India by the Promotion and Regulation of Online Gaming Act, 2025 (PROG) Act, 2025, and therefore Winzo could not make foreign investments or continue to invest after the enforcement of the ban on online gaming in India. Winzo holds foreign currency and foreign earnings generated abroad in the bank accounts of its US and Singapore branches, in violation of Part 19 of FEMA in violation of FEMA’s prohibited activities in to the extent of Rs.19,590 crore.