ED attaches ₹442 crore assets in RummyCulture money laundering case
The Enforcement Directorate (ED) has provisionally attached movable and immovable properties worth about ₹442.35 crore under the Prevention of Money Laundering Act (PMLA) in a case involving the RummyCulture app and others.
The provisional attachment order, dated September 25, covers fixed-deposit balances, commercial shops, a villa and several residential properties held in the names of family members, private family trusts and entities associated with shareholders of Gameskraft Technologies Pvt Ltd, the agency said.
The latest action takes the total value of assets attached, frozen and seized during the investigation to about ₹2,843 crore, according to the ED.
Probe stems from Telangana FIRs
The ED initiated its investigation on the basis of multiple first information reports (FIRs) registered by law-enforcement agencies in Telangana for alleged cheating offences under the Bharatiya Nyaya Sanhita, 2023. These are scheduled offences under the PMLA, the agency said.
Earlier, the ED conducted searches at Gameskraft’s office and the residential premises of its directors and key employees between May 7 and May 14, and again between June 20 and June 21. The searches led to the seizure of documents, digital devices and electronic records, according to the release.
The agency said its investigation found that Gameskraft Technologies and RummyTime Technologies operated online real-money games, particularly rummy games and tournaments, through applications under brands including RummyCulture, RummyPrime, Playship and RummyTime.
These platforms had around 30 million users across the country, with a significant number allegedly located in states where online real-money gaming was banned, including Telangana, Andhra Pradesh and Tamil Nadu, the ED said. It alleged that the companies earned revenue through platform commissions ranging from 10 per cent to 15 per cent of users’ staking or wagering amounts.
ED alleges use of automated players
The ED alleged that while the companies represented their platforms as transparent, fair and free from automated players or bots, automated programmes or algorithms were deployed against users without their knowledge or consent.
According to the agency, the use of bots resulted in financial losses for users and generated what it described as proceeds of crime for the companies.
The ED further alleged that the companies employed deceptive user-acquisition and retention strategies and spent about ₹1,035 crore on marketing and promotional campaigns.
New users were offered bonuses, referral incentives, free tournament entries and promotional rewards. The agency also alleged that withdrawal levies of between 5 per cent and 10 per cent were imposed in certain cases and that users were encouraged to convert withdrawable balances into non-withdrawable ‘Game Cash’ through ‘Super Booster’ offers.
Dormant users, including those who had stopped playing after suffering financial losses, were allegedly targeted through cash credits, promotional offers, push notifications, SMS campaigns and telemarketing calls to encourage them to resume playing, the agency said.
ED traces alleged proceeds through dividends, buybacks
The ED alleged that proceeds generated through these activities were subsequently layered and integrated through dividend payments and share buybacks to shareholders.
The money was also allegedly invested in mutual funds, bonds, convertible notes, equity shares and high-value movable and immovable assets, including properties held through family trusts and associated entities, to project the funds as untainted, the agency said.
Earlier in the investigation, movable assets worth about ₹495 crore were frozen, while ₹11 lakh in cash and gold and diamond jewellery, including bullion weighing about 2.30 kg, were seized. The ED had also issued a provisional attachment order covering properties worth about ₹1,906 crore.
Further investigation is underway.
