The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached movable assets worth USD 55.69 million (approximately ₹505 crore) in the ongoing Winzo money laundering investigation under the Prevention of Money Laundering Act (PMLA), 2002. The attached assets consist of foreign bank balances held in the United States and Singapore.
The accounts are maintained in the names of M/s. Winzo US Inc (USA) and M/s. Winzo SG Pte. Ltd. (Singapore), which the ED has described as shell entities of M/s. Winzo Pvt. Ltd. According to the agency, these entities are operated and controlled by Paavan Nanda and Ms. Saumya Singh Rathore.
With this latest action, the total value of assets attached or frozen in the case has reportedly reached approximately ₹1,194 crore.
Search Operations and Evidence Collection (Nov/Dec’25)
The ED conducted search and seizure operations on:
- 18 November 2025 at the office premises of M/s. Winzo Pvt. Ltd. and the residential premises of one of its Directors
- 30 December 2025 at the premises of the company’s accounting firm
Material seized during these searches, followed by financial and digital analysis, allegedly revealed irregularities linked to the company’s online real-money gaming operations.
Allegations Regarding Real-Money Gaming Practices
Use of BOTs and Algorithm-Driven Profiles
According to the ED, users on the Winzo platform were allegedly made to participate in real-money games against BOTs, artificial intelligence systems, and algorithm-driven software profiles, referred to in the investigation as PPP/EP/Persona.
The agency has indicated that users were not clearly informed that they were competing against non-human players. The absence of such disclosure, as per the ED, may have influenced gameplay decisions, participation behaviour, and deposit patterns.
Alleged Withdrawal Restrictions
The investigation further alleges that restrictions or limitations were imposed on withdrawals from customers’ digital wallets maintained on the platform.
According to the ED, the combination of BOT-based gameplay and withdrawal constraints may have encouraged repeated participation. The agency claims that this mechanism allegedly resulted in increased revenue generation for the company.
Proceeds of Crime: Revenue Model and Quantification
Rake Commission Structure
The ED has stated that M/s. Winzo Pvt. Ltd. generated proceeds of crime through “rake commission” collected from matches played between BOTs and real players.
Under the alleged operational model:
- Users deposited funds into gaming wallets on the Winzo app
- Matches were played repeatedly, in some instances allegedly without disclosure of BOT participation
- A rake commission was deducted per match
- Cumulative deductions allegedly converted user deposits into company revenue
The ED asserts that this structure enabled systematic appropriation of user funds through rake commissions.
Total Proceeds of Crime
The agency has quantified the total proceeds of crime at ₹3,522.05 crore for the period spanning FY 2021-22 to FY 2025–26 (up to 22 August 2025).
Before the present attachment of ₹505 crore, movable properties worth approximately ₹689 crore had already been frozen in the case.
Overseas Transfers and Alleged Shell Entities
According to the ED, a portion of the alleged direct proceeds of crime was transferred outside India under the guise of overseas investments.
While day-to-day operations and banking activities were allegedly managed from India, approximately USD 55 million was parked in foreign accounts maintained by Winzo-linked entities in the United States and Singapore.
The latest provisional attachment specifically targets these overseas balances as part of asset-securing measures under the PMLA.
Prosecution Complaint and Legal Status
A Prosecution Complaint was filed before the Hon’ble Special Court under the PMLA, Bengaluru (CCH-1), on 23 January 2026.
With the current action, the cumulative value of attached or frozen assets in the Winzo case stands at approximately ₹1,194 crore, as stated by the ED.
Under the PMLA framework, provisional attachment is a statutory safeguard designed to prevent transfer, concealment, or dissipation of assets during investigation. Final confiscation depends on confirmation by the Adjudicating Authority and the outcome of judicial proceedings.
Ongoing Investigation and Regulatory Implications
The ED has confirmed that further investigation remains in progress. Additional attachments or legal measures may follow based on ongoing analysis.
Given the scale of the alleged proceeds and the focus on BOT disclosure, rake commissions, and overseas transfers, the case carries broader implications for:
- Transparency in online real-money gaming platforms
- Disclosure standards in digital gameplay
- Anti-money laundering compliance in gaming businesses
- Cross-border fund transfer scrutiny
Regulators, compliance professionals, digital gaming operators, and platform users are likely to monitor developments closely.
Source: ED Press Release dated 18/02/2026 regarding Winzo Group ODI FEMA Case