The Enforcement Directorate (ED) has provisionally attached movable and immovable properties worth ₹442.35 crore under the Prevention of Money Laundering Act (PMLA) in a case involving the RummyCulture app and others. According to reports from Business Standard, the provisional attachment order, dated September 25, covers fixed-deposit balances, commercial shops, a villa and several residential properties held in the names of family members, private family trusts and entities associated with shareholders of Gameskraft Technologies Pvt Ltd. With this latest attachment, the total value of assets attached, frozen and seized during the investigation now stands at about ₹2,843 crore, as reported by the ED.
The ED initiated its investigation on the basis of multiple first information reports (FIRs) registered by law-enforcement agencies in Telangana for alleged cheating offences under the Bharatiya Nyaya Sanhita, 2023. As reported by Business Standard, the agency conducted searches at Gameskraft's office and the residential premises of its directors and key employees between May 7 and May 14, and again between June 20 and June 21. The searches led to the seizure of documents, digital devices and electronic records.
According to the ED investigation, Gameskraft Technologies and RummyTime Technologies operated online real-money games, particularly rummy games and tournaments, through applications under brands including RummyCulture, RummyPrime, Playship and RummyTime. As reported by Business Standard, these platforms had around 3 crore users across the country, with a significant number allegedly located in states where online real-money gaming was banned, including Telangana, Andhra Pradesh and Tamil Nadu. The companies allegedly earned revenue through platform commissions ranging from 10 per cent to 15 per cent of users' staking or wagering amounts.
The ED alleged that while the companies represented their platforms as transparent, fair and free from automated players or bots, automated programmes or algorithms were deployed against users without their knowledge or consent. According to the agency, the use of bots resulted in substantial financial losses for users and generated what it described as proceeds of crime for the companies. The ED further alleged that the companies employed deceptive user-acquisition and retention strategies and spent about ₹1,035 crore on marketing and promotional campaigns.
The latest action takes the total value of assets attached, frozen and seized during the investigation to about ₹2,843 crore, according to the ED. Earlier in the investigation, movable assets worth about ₹495 crore were frozen, while ₹11 lakh in cash and gold and diamond jewellery, including bullion weighing about 2.30 kg, were seized. The ED had also issued a provisional attachment order covering properties worth about ₹1,906 crore. Further investigation is underway, as reported by Business Standard.
