WinZO Gaming in trouble: ED freezes ₹500 crore as Karnataka High Court orders probe cooperation

High-profile investigation unfolds as WinZO Games Pvt. Ltd. comes under ED and court directives following allegations of PAN misuse, AI-driven gaming fraud, and illicit fund transfers.

The Karnataka High Court has directed WinZO Games Private Limited to fully cooperate with the ongoing police investigation following allegations of PAN card misuse on its gaming platform. The court issued the direction after a woman approached authorities, claiming that her PAN card was misused without her consent through the WinZO gaming app.

Based on the complaint, WinZO Games had earlier informed the complainant to submit detailed information to enable registration of a formal case. Subsequently, the police issued summons to the company, asking its representatives to appear for questioning. The High Court has now instructed WinZO Games to participate in the investigation scheduled for January 12.

While directing cooperation, the court also clearly instructed the police not to harass the company or its representatives under the pretext of investigation. The focus, the court said, must remain on collecting facts and completing the probe in a lawful manner.

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This case forms part of a larger controversy surrounding the WinZO gaming app, which has been accused of cheating lakhs of users across the country. The Enforcement Directorate (ED) registered a case in November over alleged illegal money transactions linked to the platform. Investigations have been launched in multiple states, including Delhi, Karnataka, Ghaziabad, and Rajasthan, with Bengaluru-based ED officials also probing the matter.

The ED registered cases against WinZO co-founder Saumya Singh Rathore and CEO Paavan Nanda following complaints that artificial intelligence technology was used to deceive users. Investigators alleged that AI-based systems were deployed to manipulate games, resulting in massive illegal financial gains.

During the probe, ED officials detected money laundering involving crores of rupees and froze assets worth over ₹500 crore. Saumya Singh Rathore was recently granted bail in connection with the case. However, Paavan Nanda was placed in ED custody after a sessions court granted four days of custodial interrogation.

With the custody period ending today, the ED is set to produce Paavan Nanda before the court. The agency’s arguments in the case were presented by Special Public Prosecutor Madhu N. Rao. Investigations into PAN misuse, financial fraud, and alleged AI-based deception by the gaming platform are currently ongoing.