New Delhi, 27 September (H.S.):

The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth around Rs 442.35 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the RummyCulture app and related case. The assets include funds held in fixed deposits, commercial shops, a villa and several residential properties. According to the ED, these properties are held in the names of family members of shareholders of Gameskraft Technologies Private Limited, private family trusts and various associated entities.

The ED’s Bengaluru Zonal Office issued Provisional Attachment Order No. 40/2026 on September 25 under Section 5(1) of the PMLA. The agency had initiated a PMLA investigation on the basis of several FIRs registered by a law-enforcement agency in Telangana under the Bharatiya Nyaya Sanhita, 2023, in connection with allegations of fraud. These offences are scheduled offences under the PMLA.

Earlier, between May 7 and 14, 2026, and June 20 and 21, 2026, the ED conducted search and seizure operations under Section 17 of the PMLA at the offices of Gameskraft Technologies Private Limited and at the residential premises of its directors and key employees. During the searches, several incriminating documents, digital devices and electronic records were seized. According to the ED, these materials have emerged as significant evidence in the investigation.

The investigation so far has revealed that Gameskraft Technologies Private Limited and RummyTime Technologies Private Limited were operating online real-money games (RMG), particularly online rummy games and tournaments, through mobile applications. These activities were conducted under various brands, including RummyCulture, RummyPrime, PlayShip and RummyTime. According to the ED, the platforms had a user base of around three crore people across the country.

According to the ED’s investigation, a large number of users were also located in states where online real-money gaming is prohibited, including Telangana, Andhra Pradesh and Tamil Nadu. The companies allegedly generated substantial revenue by charging platform commissions of 10 to 15 per cent on the amounts staked or wagered by users.

The investigation further revealed that the companies represented their gaming platforms to users as transparent, fair and free from automated players, or bots. Despite this, the ED alleged that the companies used bots, or automated programmes and algorithms, against users without their knowledge or consent. This allegedly resulted in significant financial losses for users and generated proceeds of crime for the companies.

According to the ED, the companies also employed deceptive and addictive strategies to attract new users and retain existing ones. New users were encouraged to play continuously and deposit larger amounts through bonuses, referral incentives, free tournament entries and promotional rewards. The companies spent around Rs 1,035 crore on marketing and promotional campaigns to acquire new users.

The investigation also found that withdrawal charges of between five and 10 per cent were levied in certain cases. In addition, users were allegedly encouraged through ‘Super Booster’ offers to convert withdrawable balances into non-withdrawable ‘game cash’.

The ED alleged that even inactive users who had stopped playing after suffering substantial financial losses were targeted and encouraged to resume gaming. This was allegedly done through instant cash credits, promotional offers, push notifications, SMS campaigns and telemarketing calls. According to the agency, these activities created a gaming environment that encouraged repeated wagering and generated substantial proceeds of crime for the companies in the form of platform commissions.

The investigation also revealed that the proceeds of crime generated through these activities were subsequently layered and integrated through dividends paid to shareholders and share buybacks. The funds were then allegedly concealed through investments in mutual funds, bonds, convertible notes, equity shares, movable assets and high-value immovable properties. These included assets held through family trusts and associated entities. According to the ED, such arrangements were allegedly intended to project these assets as untainted property.

The ED said that during earlier searches, movable assets worth around Rs 495 crore were frozen under Section 17(1A) of the PMLA. In addition, Rs 11 lakh in cash and around 2.30 kg of gold and diamond jewellery and bullion were seized. An earlier provisional attachment order covering assets worth approximately Rs 1,906 crore had also been issued.

According to the ED, the total value of proceeds of crime attached, frozen and seized so far during the investigation has now reached approximately Rs 2,843 crore. Further investigation in the case is underway.

---------------

Hindusthan Samachar / Jun Sarkar