Hyderabad, Feb 19 (IANS) GST intelligence, Hyderabad, has arrested Pankaj Kumar, founder and director of Adsum Advisory Service Pvt Ltd, in the case of an organised syndicate worth Rs 13,000 crore involved in operating illegal online gaming websites with the assistance of associated fintech companies.​

Directorate General of GST Intelligence, Hyderabad Zonal Unit, said on Thursday that the arrest is a significant development linked with the online gaming investigation.​

Adsum Advisory Service provides fraud detection and customer verification/digital KYC services.​

Evidence gathered during the investigation identified an organised syndicate worth Rs 13,000 crore, operating illegal online gaming websites with the assistance of associated fintech companies, including payment aggregators, payment gateways, and third-party technology service providers.​

According to the Directorate General, Pankaj Kumar is one of the masterminds responsible for fraudulent KYC verification of merchants and shell entities on behalf of RBI-regulated entities, such as Payment Gateways and Banking as Payment Aggregator (BAPA).​

As the director of a company responsible for the KYC verification process, Pankaj Kumar failed to develop a risk profile of customers based on ownership and control structures, and helped onboard shell entities for UPI integration required for the flow of money from online gaming. He is one of the beneficiaries who received illegitimate proceeds of crime generated by an online gaming syndicate, the release said.​

According to one estimate, the gross valuation of online gaming in India in 2025 is about USD 23 billion (two lakh crores). DGGI, Hyderabad, has launched a massive crackdown on online gaming syndicates, including action against associated Fintech companies, freezing bank accounts to the tune of Rs 100 crores and arresting masterminds.​

Further investigation is in progress, it added.​

–IANS

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