ED Attaches Another ₹442 Cr Assets In Gameskraft’s RummyCulture Probe

The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth around ₹442.35 Cr in the money laundering case involving Gameskraft Technologies, the operator of the RummyCulture app.

The order, issued on September 25 (Friday) under the Prevention of Money Laundering Act (PMLA), covers fixed deposits, commercial shops, a villa, and residential properties held in the names of Gameskraft shareholders’ family members, private family trusts, and associated entities.

With this action, the total value of assets attached, frozen, and seized in the investigation has reached around ₹2,843 Cr, the agency said in a statement.

The ED alleged that proceeds from the gaming operations were routed to shareholders through dividends and share buybacks, and subsequently invested in financial assets and properties to conceal their origins.

The latest attachment follows an earlier order covering properties worth around ₹1,906 Cr. In its latest statement, the agency also cited previously frozen movable assets worth around ₹495 Cr, along with the seizure of ₹11 Lakh in cash and around 2.30 kg of gold and diamond jewellery, including bullion.

ED Alleges Bot Use, Withdrawal Restrictions

The ED said its investigation was based on multiple FIRs registered in Telangana alleging cheating.

According to the agency, Gameskraft Technologies and RummyTime Technologies operated online rummy games and tournaments through brands including RummyCulture, RummyPrime, Playship, and RummyTime.

These platforms had around 3 Cr users across India and charged commissions of 10%-15% on users’ stakes, the ED said. It alleged that a significant number of users were from Telangana, Andhra Pradesh, and Tamil Nadu, where online real-money gaming had been banned.

The agency alleged that the platforms deployed bots against users without their knowledge, despite assurances that the games were fair and free of automated players. This caused users to lose money while generating revenue for the operators, it claimed.

The ED also said the companies spent around ₹1,035 Cr on marketing and promotions, using bonuses, referral rewards, and free tournament entries to encourage continued play and higher deposits.

It alleged that withdrawals were restricted, including through fees of 5%-10% in some cases. Users were also encouraged to convert withdrawable balances into non-withdrawable “Game Cash” through “Super Booster” offers.

Those who had stopped playing, including users who had suffered heavy losses, were allegedly targeted with cash credits, promotional offers, push notifications, SMSes, and telemarketing calls to bring them back to the platforms.

Notably, the agency said it searched Gameskraft’s offices and the homes of its directors and key employees during May 7-14 and June 20-21, seizing documents, digital devices, and electronic records.

It also arrested three Gameskraft cofounders in May. However, in June, the Karnataka High Court declared their arrests illegal and ordered their immediate release after they challenged the ED’s action.

The continuing investigation adds to Gameskraft’s troubles following last year’s nationwide ban on real-money gaming. Its RummyCulture and RummyTime platforms were effectively shut down following the ban, while the startup subsequently cut more than 400 jobs.

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