Ex-Gameskraft CFO siphoned company funds worth ₹270cr
What's the story
Bengaluru-based real-money gaming company, Gameskraft Technologies, has lodged a police complaint against its former Group CFO Ramesh Prabhu. The complaint alleges that Prabhu embezzled funds over three to four years to fund his personal investments in futures and options (F&O) trading. The reckless gamble reportedly resulted in losses exceeding ₹250 crore for the company.
Admission
Prabhu's 'voluntary' confession email
On March 5, Prabhu sent a 'voluntary' confession email to Gameskraft, admitting to his role in the financial misconduct. He confessed that he diverted company funds over three to four years for personal F&O trading. The company had to write off ₹270.43 crore in its FY25 financial statements due to this revelation.
Legal action
Allegations against Prabhu
The details of Prabhu's actions were revealed in an FIR registered at the Marathahalli police station on September 9. Gameskraft alleged that Prabhu "dishonestly" siphoned off ₹270.43 crore over three to four years for his own trading activities, without the company's authority or consent. The FIR includes several offenses under the Bharatiya Nyaya Sanhita (BNS), including theft, criminal breach of trust, fraudulent concealment of property, forgery, and falsification of accounts.
Discovery
Unauthorized transactions
Following Prabhu's disclosure, Gameskraft conducted a detailed "fact-finding" review. The investigation revealed that he had executed unauthorized financial transactions worth ₹231.39 crore between FY20 and FY25. Of this amount, ₹211.53 crore was wrongly shown as 'investments' in the company's books with a carrying value of ₹250.57 crore as of March 31, 2024. An additional ₹19.86 crore was recorded as 'investments' in FY25, according to the FIR.
Evasion
How he executed the trades?
The investigation also found that Prabhu conducted these trades via an account at RBL Bank, which he controlled alone. He allegedly diverted funds from this account to his personal bank account, while showing it as 'investments' in the company's books. The FIR noted that Prabhu had manipulated the firm's bank statements and also created fake mutual fund statements as proof of investments to hide these transactions.
Absence
Other key developments
Gameskraft alleged that Prabhu's deliberate acts of forgery, falsification of the accounts, and concealment of transactions showed a clear intent to misappropriate funds. He has not reported to work since March 1, and has been untraceable since sending the email. The company has failed in its attempts to contact him or locate his whereabouts. Meanwhile, Gameskraft has also responded to India's new online gaming law by discontinuing its online rummy apps this September.