Karnataka High Court says arrest of Gameskraft founders was illegal

The Karnataka High Court on Tuesday declared the arrest of Gameskraft founders Deepak Singh, Vikas Taneja, and Prithviraj Singh by the Directorate of Enforcement (ED) to be illegal and directed their release from jail [Deepak Singh v Directorate of Enforcement and connected matters]..Justice M Nagaprasanna pronounced the verdict today. "Writ petitions are allowed. Arrest of these petitioners is declared contrary to law. As a consequence thereof the petitioners shall be set at liberty forthwith. The Registry is directed to intimate the prison authorities to enable release of these petitioners. (Writ petition) allowed bearing in mind the observations made.".Deepak Singh, Vikas Taneja, and Prithviraj Singh are directors of Gameskraft Technologies and RummyCulture Technologies.These founders were arrested from Gurgaon in May this year and were thereafter remanded to the ED's custody in Bengaluru. Their arrest was made in connection with a money laundering case tied to three first information reports (FIRs) registered in Telangana in early 2026.The ED had alleged that Gameskraft operated online gaming platforms that manipulated gameplay, cheated users through deceptive practices and laundered proceeds of crime through bogus business expenditure entries and cash transactions.According to the ED, Gameskraft and its associated entities lured users to real-money rummy platforms through bonuses, referral incentives, instant cash offers and tournament benefits.The agency alleged that new users were initially allowed to win small amounts in low-stake games to build confidence and induce larger deposits, thereby creating a false impression that earning money on the platforms was easy.The ED also claimed that users complained of one-sided games, suspected use of algorithms and bots, duplication of cards, recurring score patterns favouring certain players, collusion among players, forced logouts and blocking of user IDs, resulting in heavy financial losses.The ED had further alleged that the directors and founders, acting in collusion with former chief financial officer Ramesh Prabhu, diverted and laundered nearly ₹250 crore under the guise of investments in futures and options and mutual funds..Senior Advocate S Muralidhar appeared for Deepak Singh. Senior Advocates Vikram Chaudhri, Sajan Poovayya, and Sandesh Choutha represented Prithvi Raj Singh and Vikas Taneja. Advocates Sankalp Sharma, and Suhaan Mukherji also represented the petitioners. Their plea was filed through Advocate Sampreeth V, PLR Chambers Managing Partner Suhaan Mukerji, and HM Sidharth. Special Public Prosecutor Madhu N Rao appeared for the ED.Karnataka High Court asks ED to justify its arrest of Gameskraft founders.[Read Judgment]