Karnataka High Court seeks ED's response to Gameskraft founders' plea against arrest

The Karnataka High Court on Tuesday sought the response of the Directorate of Enforcement (ED) to petitions filed by the founders of online gaming company, Gameskraft, challenging their recent arrest in a money laundering case [Deepak Singh v Directorate of Enforcement].

A vacation Bench comprising Justice MGS Kamal issued notice to the ED on the petitions moved by Deepak Singh, Prithvi Raj Singh and Vikas Taneja.

The matter is scheduled to be heard next on May 14.

Gameskraft's founders were arrested from Gurgaon last week on allegations of luring players into real-money games and laundering approximately ₹250 crores.

The matter involves allegations that Gameskraft and its associated entities lured users to their real-money rummy platforms through bonuses, referral incentives, instant cash offers, and tournament benefits.

First-time users were allowed to win small amounts in initial low-stake games, in order to build confidence and create an impression of easy earnings on the platform. This was allegedly instrumental to inducing larger deposits.

Other allegations against the founders and directors include that they diverted and laundered ₹250 crore under the guise of investments in futures and options and mutual funds, in collusion with Gameskraft's former Chief Financial Officer, Ramesh Prabhu.

Following First Information Reports (FIRs) registered in Telangana, the ED arrested the founders of Gameskraft on May 8. The ED later produced them before a Bengaluru trial court, following which they were remanded to the ED's custody.

The accused founders have now challenged their arrest before the High Court.

Senior Advocate Dr S Muralidhar appeared for one of the platform's founders, Deepak Singh and contended that the arrest was illegal.

"The company (Gameskraft) has closed its operations pursuant to the legislation passed by the Parliament (The Promotion and Regulation of Online Gaming Act, 2025)," he added.

Similar petitions have been moved by co-founders of Gameskraft Prithvi Raj Singh and Vikas Taneja, as well. Senior Advocate Sajan Poovayya represented them in today's hearing.