Two more Gameskraft directors sent to ED custody in money laundering case

A Bengaluru court on Saturday remanded two directors of online gaming company Gameskraft to the custody of Enforcement Directorate (ED) in a money laundering case.

Principal City Civil and Sessions Court in-charge Judge Shankarappa Nimbanna Kalkani allowed the ED’s remand plea and handed the custody of directors Prithvi Raj Singh and Deepak Singh Ahlawat to ED till May 13.

ED's case is based on three FIRs registered in Telangana earlier this year over alleged cheating of users on online rummy platforms RummyCulture and RummyTime.

Earlier, co-founder and director Vikas Taneja was produced before the court on May 8 and remanded to ED custody.

Singh and Ahlawat were brought to Bengaluru on transit remand and produced before the Court today.

The Court while remanding the duo to ED custody also rejected a plea by Ahlawat for home food in custody.

However, the Court clarified that while in police custody, the three are not to be ill-treated and should be provided necessary amenities including medical assistance.

The judge also allowed them to meet their lawyers and family members during custody.

ED has alleged in its remand application that Gameskraft and its associated entities lured gullible users to real-money rummy platforms through bonuses, referral incentives, instant cash offers and tournament benefits.

New users were allegedly allowed to win small amounts in initial low-stake games to build confidence and induce larger deposits, creating a false impression that earning money on the platforms was easy.

According to ED, 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, leading to heavy financial losses.

ED also alleged that the directors and founders, acting hand in glove with former chief financial officer Ramesh Prabhu, diverted and laundered about ₹250 crore under the guise of investments in futures & options and mutual funds.

Part of the alleged proceeds of crime were routed as bogus business expenditure entries to shell entities and then brought back in cash, which was allegedly used for illegal activities, personal use and even to facilitate questions being raised in the Lok Sabha.

The Telangana FIRs collectively allege cheating of players to the tune of several crores through deceptive practices, manipulated gameplay and wrongful blocking of user accounts.

Special Public Prosecutor Maheshwari DM appeared for the ED.

Senior Advocate Sajan Poovayya represented Ahlawat and Singh.