The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached movable assets worth $55.69 million (approximately ₹505 crore) held in foreign bank accounts in the United States and Singapore as part of its ongoing money laundering investigation against Winzo Private Limited, a social gaming and interactive entertainment company.
Overseas Funds Attached
According to the agency, the attached funds were parked in overseas bank accounts in the names of alleged shell entities — Winzo US Inc. and Winzo SG Pte. Ltd.. These entities are purportedly operated and controlled by Paavan Nanda and Saumya Singh Rathore, who are associated with the Indian parent company.
The ED stated that the foreign remittances were made under the guise of investments, while the effective control and core operations of the company continued to remain in India.
Search Operations and Alleged Findings
The attachment follows search and seizure operations carried out on November 18, 2025, at the registered office premises of Winzo Pvt. Ltd. and the residential premises of one of its directors. A subsequent search was conducted on December 30, 2025, at the company’s accounting firm.
Based on material gathered during these searches and subsequent investigation, the ED has alleged that the platform engaged in fraudulent practices by enabling users to participate in real-money games against bots and artificial intelligence-driven systems — referred to internally as PPP, EP, or Persona — without disclosing that the opponents were not human players.
Investigators further claim that users were led to believe they were competing against real individuals, while in reality, a portion of matches were allegedly structured against automated systems.
Alleged Manipulation of Withdrawals
The agency has also alleged that the platform imposed restrictions or limitations on withdrawals from users’ wallets. This, according to the ED, incentivised continued gameplay and repeated deposits.
The ED claims that Winzo generated “proceeds of crime” primarily through rake commissions earned from matches played between bots and real users. By creating an ecosystem where users were induced to deposit repeatedly and continue playing, the company allegedly converted user deposits into systematic revenue streams through commissions levied on each game.
Rs. 3,522 Crore Alleged Proceeds
As per the ED’s findings, the company allegedly generated proceeds of crime amounting to ₹3,522.05 crore between the financial years 2021–22 and 2025–26 (up to August 22, 2025).
So far, the agency has frozen movable assets worth approximately ₹689 crore in the case. With the latest provisional attachment of ₹505 crore overseas, the total value of assets attached or frozen now stands at around ₹1,194 crore.
PMLA Proceedings Initiated
A prosecution complaint has been filed before the Special Court in Bengaluru under the provisions of the Prevention of Money Laundering Act on January 23, 2026.
Officials said that further investigation is underway to trace additional funds and examine the flow of money routed abroad.
The company has not yet publicly responded to the latest action at the time of publication.
