1 week ago
ED attaches Rs 442 crore assets in online gaming case
The Enforcement Directorate, or ED, is investigating online gaming companies after cheating complaints were filed.
It says Gameskraft Technologies and RummyTime Technologies promoted money-based games such as rummy.
The companies’ apps reportedly had about three crore users.
The ED says the companies charged fees whenever users deposited money to play.
It also alleges that computer programs called BOTs played against users without their knowledge.
According to the agency, this caused users to lose money and helped the companies earn illegal proceeds.
The ED has attached properties and other assets worth Rs 442 crore.
The companies allegedly used investments, dividends, share buybacks and properties to hide or present the money as legitimate.
The Enforcement Directorate attached assets worth Rs 442 crore under the Prevention of Money Laundering Act.
Gameskraft Technologies and RummyTime Technologies allegedly invested about Rs 1,000 crore promoting online real-money games.
The platforms reportedly had around three crore users and charged commissions of 10 to 15 per cent.
The ED alleged that undisclosed BOTs caused user losses while generating proceeds of crime for the companies.
Attached assets include fixed deposits, commercial shops, a villa and residential properties linked to shareholders and family trusts.
- Who
- The Enforcement Directorate is investigating Gameskraft Technologies Private Limited and RummyTime Technologies Private Limited over alleged cheating through online gaming applications.
- What
- The ED attached assets worth Rs 442 crore and alleged that the companies used BOTs, deceptive promotions and financial transactions to generate and conceal proceeds of crime.
- Where
- The investigation concerns gaming platforms used across the country, including users in Telangana, Andhra Pradesh and Tamil Nadu; the report is datelined Hyderabad.
- When
- The attachment was announced in the latest development of an investigation initiated after multiple FIRs; the articles do not provide a specific date.
- Why
- The ED began the investigation following Telangana Police FIRs alleging cheating and claims that the companies operated real-money gaming platforms through deceptive practices.
Key facts
- Attached assets
- Rs 442 crore
- Companies named
- Gameskraft Technologies Private Limited and RummyTime Technologies Private Limited
- Reported user base
- Around three crore people across the country
- Marketing expenditure
- Approximately Rs 1,035 crore
- Reported investment in promotion
- Around Rs 1,000 crore
- Platform commission
- 10 to 15 per cent of users’ staking or wagering deposits
- Law invoked
- Prevention of Money Laundering Act, 2002
Sources
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