Why ED has attached Gameskraft's assets worth ₹442cr
What's the story
The Enforcement Directorate (ED) has attached assets worth ₹442 crore in its money laundering investigation against online gaming company Gameskraft and its app RummyCulture. The agency issued a provisional order on September 25 under Prevention of Money Laundering Act (PMLA) to freeze these properties. The assets include fixed deposits, commercial shops, a villa, and several residential properties held in the names of the family members, private family trusts and various associated entities of the shareholders of Gameskraft Technologies Pvt Ltd.
Asset value
Total value of assets frozen in this case reaches ₹2,843cr
The ED has said that the total value of these properties is ₹442.35 crore.
With this latest order, the total value of attachment and assets frozen in this case now stands at a whopping ₹2,843 crore.
The agency alleged that Gameskraft Technologies and RummyTime Technologies were running online real money games (RMGs) on mobile apps under different brands such as RummyCulture, RummyPrime, Playship, and RummyTime.
Allegations
Platforms had a user base of around 3cr across India
The platforms reportedly had a user base of around three crore across India.
The ED alleged that a "significant" number of these users were from states where online real money gaming is banned, including Telangana, Andhra Pradesh, and Tamil Nadu.
Despite claiming transparency and fairness, the platforms allegedly used bots (automated programs/algorithms) against unsuspecting users without their knowledge or consent.
Financial impact
Allegations of addictive gaming environment
The ED alleged that the use of bots resulted in major financial losses for users while generating proceeds of crime for the companies.
The agency also claimed that these "unscrupulous" practices created an addictive gaming environment, promoting repeated wagering and enabling the companies to generate huge proceeds in the form of platform commission.