ED Moves High Court Against WinZO Co-Founder Saumya Singh Rathore in ₹1,194 Crore Money Laundering Probe
Foreign Accounts Worth ₹505 Crore Linked to Shell Companies Attached
Court to Decide on Bail Cancellation Amid Gaming Industry Scrutiny
By Our Legal Reporter
New Delhi: February 21, 2026:
The Enforcement Directorate (ED) has intensified its probe into online gaming platform WinZO Games Pvt. Ltd., moving the Karnataka High Court to cancel bail granted to co‑founder Saumya Singh Rathore. The case, which involves alleged money laundering through overseas shell companies, has already seen the attachment of assets worth over ₹1,194 crore. The ED’s action underscores growing regulatory scrutiny of India’s booming online gaming industry and its compliance with financial laws.
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Background of the Case
- WinZO was co‑founded in 2017 by Saumya Singh Rathore and Paavan Nanda.
- The ED alleges that the company used automated gaming profiles in real‑money games, unfairly impacting players and generating illicit profits.
- Investigations revealed foreign bank accounts in the United States and Singapore, allegedly controlled through shell companies linked to the founders.
- On November 27, 2025, Rathore and Nanda were arrested in Bengaluru under PMLA charges. They were later granted bail, with Rathore benefiting from the statutory exemption available to women under Section 45(1)(ii) of PMLA.
ED’s Recent Actions
- On February 19, 2026, the ED provisionally attached assets worth ₹505 crore in foreign accounts linked to WinZO’s shell companies.
- Earlier, the agency had frozen domestic assets including bank deposits, mutual funds, and bonds worth ₹590 crore.
- The total value of attached/frozen assets now stands at approximately ₹1,194 crore.
- The ED has argued that Rathore’s bail should be cancelled to prevent interference with ongoing investigations.
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Court Proceedings
- The Karnataka High Court is currently hearing the ED’s plea to cancel Rathore’s bail.
- Conditions imposed earlier required her to furnish a personal bond of ₹5 lakh, surrender her passport, and cooperate with investigators.
- The ED contends that despite these conditions, her release could hinder evidence collection and witness examination.
Legal Significance
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- PMLA Enforcement: The case highlights the stringent application of PMLA provisions in India’s digital economy.
- Women’s Bail Exemption: Rathore’s bail under Section 45(1)(ii) raises questions about balancing gender‑based statutory relief with serious financial crime allegations.
- Gaming Industry Regulation: The probe signals increased oversight of online gaming platforms, particularly those involving real‑money transactions.
- Cross‑Border Transactions: The attachment of foreign accounts underscores the ED’s focus on international money flows and shell company structures.
Broader Implications
- For the Gaming Industry: The case could set a precedent for stricter compliance requirements in online gaming.
- For Investors: Regulatory uncertainty may impact funding in India’s gaming startups.
- For Law Enforcement: The probe demonstrates ED’s expanding role in tackling financial crimes linked to digital platforms.
- For Judiciary: The High Court’s decision on bail cancellation will shape future interpretations of PMLA’s bail provisions.
Conclusion
The ED’s aggressive pursuit of WinZO co‑founder Saumya Singh Rathore marks a turning point in India’s regulation of online gaming and financial compliance. With assets worth nearly ₹1,200 crore attached and bail cancellation under consideration, the case underscores the intersection of technology, finance, and law. The outcome will not only determine Rathore’s legal fate but also influence the future of India’s digital gaming industry.
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