Bengaluru, May 14 (IANS) Assets worth Rs 526 crore and jewellery amounting to Rs 3.5 crore were seized by the Enforcement Directorate (ED) during searches at the premises of online gaming firm Gameskraft Technologies in connection with a Rs 1,154 crore fraud with players, an official said on Thursday.

The ED’s Bengaluru Zonal Office conducted the search and seizure operations in Bengaluru and National Capital Region on May 7 and May 13 at the office and residential premises of Gameskraft Technologies, and its Directors and key employees.

“These searches resulted in the seizure of incriminating documents, electronic records, and freezing of movable assets, including bank balances, payment gateway balances, mutual funds, bonds and fixed deposits, valued at Rs 526.49 crore,” the ED said in a statement.

The central agency also seized gold/diamond jewellery weighing 2.3 kg, worth Rs 3.5 crore and cash amounting to Rs 11 lakh.

The investigation was based on multiple FIRs registered across the country for the offences of cheating under the Indian Penal Code, 1860.

Gameskraft Technologies is into the business of hosting Rummy games and tournaments — a Real Money Game (RMG) through its mobile application, under various brands like RummyCulture, RummyPrime, Playship and RummyTime, including a B2B mobile application under the name of ‘RummyCorner’.

“The total user base of the company is around three crore across the country, and the investigation revealed that a large user base is from the states where the online real money gaming is banned, such as Telangana, Andhra Pradesh, Tamil Nadu, and to provide their online Rummy gaming services to the users of these banned states, the company has tampered their geo location,” the ED said.

For providing these RMG services, the company charges certain percentage on the stake/wagering amounts of the users, in the form of Commission (which ranges from 10 to 15 per cent).

The company also assured its users, that its gaming platform is free from any BOTs and transparent and secure.

However, the ED investigation revealed that the company indulged in unscrupulous practices in hosting/conducting the online Rummy game through its platform, by subjecting the users to play against BOTs (Automated programme/Algorithm), without the knowledge and consent of its users. Due to the usage of the BOTs, the gullible users incurred huge financial loss and also mental agony.

“The investigation revealed that users were initially lured with small rewards and made to win, even being allowed to withdraw small winnings, thereby creating a false sense of trust,” the ED added.

The federal probe agency said that once a user began playing with higher amounts, the company deployed BOTs very systematically and strategically, which resulted in significant financial losses to the users.

Evidence gathered during investigation revealed that the genuine users lost to BOT user IDs and incurred financial losses amounting to Rs 1,154 crore, the ED said.

Evidence found in the form of grievances/complaints, received by the company through its application, Front Desk, revealed that the manipulative gaming structure of Gameskraft caused severe financial distress to users (especially those from a poor financial background), and some users reportedly experienced extreme mental distress and suicidal tendencies.

Three of the company’s Directors, Prithvi Raj Singh, Vikas Taneja, and Deepak Singh Ahlawat were arrested under Section 19 of the Prevention of Money Laundering Act, 2002.

The investigation revealed that the proceeds of crime so derived by the company and its Directors, were laundered through investment in foreign entities, dividend payment to its shareholders, mutual funds, bonds, and investment in movable/immovable properties.

–IANS

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