Karnataka Court Sends Gameskraft Founders to 14-Day Judicial Custody in ED Money Laundering Probe

Gameskraft Founders Sent to 14 Days of Judicial Custody in Money Laundering Case

A special court in Bengaluru on Tuesday remanded Vikas Taneja, Prithviraj Singh, and Deepak Singh, the founders of Gameskraft, to 14 days of judicial custody in a money laundering case being investigated by the Directorate of Enforcement (ED). The three accused will remain in custody till June 2, 2026, according to Bar and Bench.

The founders had earlier spent time in ED custody between May 8 and May 19 after the agency sought their interrogation in connection with the probe. The accused have also moved bail applications before the trial court, which are expected to be heard on May 21. The ED is yet to place its objections on record.

In related matters, petitions challenging the legality of their arrests remain pending before the Karnataka High Court. During proceedings on Tuesday, Senior Advocate Dr S Muralidhar appeared for Deepak Singh, while Senior Advocate Sajan Poovayya briefly argued for Prithviraj Singh. The High Court matter is scheduled to continue on May 21.

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The case originates from three FIRs lodged in Telangana. According to the ED, Gameskraft and related entities operated online gaming platforms that allegedly manipulated gameplay, deceived users, and routed proceeds of crime through "bogus business expenditure entries and cash transactions." The agency claimed the platforms attracted players to real-money rummy games through referral rewards, bonuses, tournament benefits, and instant cash offers.

The ED further alleged that users were initially permitted to win small sums in low-value games to "build confidence and induce larger deposits," creating the impression that making money on the platforms was simple. Investigators alleged that users were also subjected to "one-sided games," suspected algorithms and bots, repeated score patterns favoring certain players, collusion among participants, forced logouts, and blocked user IDs that allegedly caused significant financial losses.

The ED has accused the founders and directors, along with former chief financial officer Ramesh Prabhu, of diverting and laundering close to ₹250 crore disguised as investments in futures and options as well as mutual funds. One of the allegations mentioned in the arrest memo concerns around ₹100 crore reflected as expenditure during 2020-21 and 2021-22 under categories including "software maintenance" and "consultancy."

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Gameskraft, which operated platforms such as RummyCulture, Rummytime, and Pocket52, shut down its real-money gaming services in August 2025 after a law banning such formats came into force. The company is also involved in separate litigation before the Supreme Court over GST demands and state laws regulating online gaming.