The Enforcement Directorate has provisionally attached movable and immovable assets worth Rs 442.35 crore in the RummyCulture money laundering case, including luxury villas, commercial units, residential properties, fixed deposits and assets linked to family trusts and entities associated with Gameskraft Technologies shareholders.
The agency’s Bengaluru zonal office announced the action on Sunday. With the latest attachment, the total value of assets attached, frozen or seized in the case has risen to Rs 2,843 crore, according to the ED.
The investigation began after multiple FIRs were registered in Telangana earlier this year. The agency conducted searches at company offices and the residences of directors in May and June, during which it said it recovered documents, digital devices and electronic records. The searches also led to the freezing of movable assets worth Rs 495 crore, along with Rs 11 lakh in cash and 2.30 kg of gold and diamond jewellery or bullion.
The ED had earlier issued a provisional attachment order covering properties valued at Rs 1,906 crore. The latest action includes fixed deposit balances, commercial shops, a luxury villa, residential properties registered in family members’ names, private family trusts and entities connected with shareholders of Gameskraft Technologies.
The agency has alleged that Gameskraft Technologies and Rummy Time Technologies operated online real-money gaming platforms, including RummyCulture, RummyPrime, Playship and RummyTime. The platforms reportedly had approximately three crore users across India. A significant number of users were located in Telangana, Andhra Pradesh and Tamil Nadu, where online real-money gaming is legally banned, the ED said.
According to the agency, the companies charged platform commissions of between 10 per cent and 15 per cent on user wagering and staking deposits. The ED has also alleged that automated players, or BOTs, were deployed against users without their knowledge, despite assurances that the games were fair and free of automated participation.
The agency further alleged that the companies spent around Rs 1,035 crore on marketing, including sign-up bonuses, referral rewards, free entries and other promotional incentives. It said users faced withdrawal restrictions, including a levy of 5 to 10 per cent on withdrawal requests, and were encouraged to convert withdrawable funds into non-withdrawable Game Cash through Super Booster offers.
The ED has alleged that dormant users were targeted through SMS messages, push notifications and telemarketing calls to encourage them to return to the platforms. It said the suspected proceeds of crime were subsequently routed through dividend payments and share buybacks, and invested in mutual funds, bonds, convertible notes, equity shares, movable assets and high-value real estate through family trusts and shell entities.
Ramesh Prabhu, the former group chief financial officer of RummyCulture operator Gameskraft Technologies, was previously booked in connection with an alleged diversion of Rs 250 crore from the company. The ED said most of that amount was reportedly lost in options trading. The latest attachment remains provisional and forms part of the agency’s continuing investigation.
