On 27 November 2025, the Enforcement Directorate arrested Saumya Singh Rathore and Paavan Nanda — co-founders of WinZO Games Pvt Ltd — under the provisions of the Prevention of Money Laundering Act (PMLA), after raids and questioning at the agency’s zonal office in Bengaluru
- The arrests come after extensive searches at WinZO’s offices and promoters’ residences across Bengaluru, Gurugram and other locations, as part of a money laundering and financial-irregularities probe.
- The ED alleges that WinZO held onto about ₹43 crore of gamers’ funds which, after a nationwide ban on real-money gaming, should have been refunded
- Additionally, the agency claims assets worth ₹505 crore — including bank balances, fixed deposits, mutual funds and other investments — have been frozen under PMLA
What the ED Says — Allegations of Fraud and Misuse
According to the ED, WinZO allegedly engaged in “unscrupulous practices” by continuing real-money gaming operations even after the regulatory ban. The agency further claims the company used software algorithms so that users played against the platform rather than other real players — a serious breach of fair-gaming norms.
Investigators also allege that funds collected in India were diverted abroad under the guise of overseas investments — with transactions routed through shell companies abroad. This, they say, amounts to laundering of illicit proceeds.
Who Are the Founders, and What’s Their Background
- Saumya Singh Rathore co-founded WinZO in 2018 — prior to that, she was associated with hospitality startup ZO Rooms (with co-founder Paavan Nanda).
- Paavan Nanda had earlier experience in hospitality/hotel-aggregator business before entering the online gaming space.
- WinZO had grown rapidly, with a known presence in real-money and social gaming, but the latest legal actions may now derail its operations significantly.
What Happens Next — Legal Process & Wider Implications
- The founders have been remanded to ED custody initially; the agency will likely file for extended remand as investigations proceed. The Indian Express
- The frozen assets and alleged holding of user funds may trigger refunds or recovery measures — potentially affecting thousands of gamers who used WinZO before the regulatory ban.
- The case underscores a broader crackdown on real-money gaming platforms in India, as regulators move to enforce laws, demand accountability, and protect consumer interests.
Why This Matters — For Gamers, Startups, and Regulation
- For gamers and users — this arrest and freezing of funds raises urgent questions about whether locked-in balances will be refunded. It can affect trust in any future gaming or reward-based platforms.
- For startups and gaming companies — the case sends a strong signal: regulatory compliance, transparent fund management, and adherence to laws are non-negotiable, especially with real-money involvement.
- For regulators & policymakers — this may lead to tighter oversight, stricter enforcement under PMLA, and more scrutiny of similar platforms in the online gaming and fintech ecosystem.
Conclusion — A Pivotal Moment for Online Gaming in India
The arrest of WinZO’s founders marks a major turning point in India’s attempt to regulate the online real-money gaming space. With large-scale asset freezes, allegations of fund diversion, and questions over user money, the case could reshape how gaming platforms operate — highlighting the importance of compliance and transparent practices in an industry under increasing scrutiny.
