WinZO's co-founder Soumya Rathore gets bail in money laundering case
What's the story
Soumya Rathore, the co-founder of online gaming platform WinZO, has been granted bail by a Bengaluru court. The decision comes after she was arrested along with her fellow co-founder Paavan Nanda on November 26 under the Prevention of Money Laundering Act (PMLA). The Enforcement Directorate (ED) had accused both of them of violating PMLA provisions.
Accusations
ED's allegations against WinZO and its founders
The ED has accused WinZO and its promoters of diverting funds and making wrongful gains worth ₹177 crore. The agency's investigation had earlier revealed alleged manipulation on the platform, including deceptive algorithms that allegedly tilted outcomes against gamers. These funds were allegedly laundered through various channels, according to the ED.
Rulings
Court's decision on Rathore and Nanda's bail pleas
While granting bail to Rathore, the court cited special protection offered to women under Section 45 of the PMLA. It held that given these statutory safeguards, she was entitled to relief at this stage of proceedings. However, Nanda's bail plea was rejected as the court observed that a custodial detention was still required due to the widening scope of investigation in this case.
Measures
ED's actions in the ongoing investigation
The ED has searched several premises linked to WinZO and its promoters in different cities. The agency has also moved to attach and freeze assets linked to the alleged proceeds of crime. The case against Rathore and Nanda is still under investigation, with more updates expected as the ED continues its probe and files further submissions before the PMLA court.