look news india
The Enforcement Directorate (ED) has taken one of the biggest actions in history against online real money gaming platforms and betting apps in the country. ED has temporarily attached movable and immovable assets worth ₹1,906 crore under the ‘Prevention of Money Laundering Act’ (PMLA) against Gameskraft Technologies Private Limited, its shareholders and associate companies, the company that runs the much-talked about ‘RummyCulture’ app.
The investigation has revealed that the company has defrauded approximately 3 crore users of crores of rupees by luring players of fair play and using automated ‘bots’. Let us understand from the perspective of a crime and corporate-policy reporter what is the whole truth of this big strike by ED.
1. Total assets worth ₹2,401 crore seized so far
The new assets worth ₹1,906 crore attached by the ED include bank balances, fixed deposits (FDs), mutual funds, equity shares, convertible notes as well as several expensive farmhouses, residential and commercial properties.
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Earlier action: Earlier, in the initial raid, ED had frozen movable assets worth ₹495 crore and seized 2.30 kg of gold-diamond jewelery along with ₹11 lakh in cash.
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Total seizure: ED total in this case so far Illegal assets worth ₹2,401 crore Has been frozen or attached.
2. Game of bots and huge commission of 10-15%: This is how fraud used to happen
The investigation, which began on the basis of multiple FIRs lodged in Telangana, found that Gameskraft and RummyTime Technologies were running illegal networks through their core apps—RummyCulture, RummyTime, RummyPrime and Playship:
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Fraud through bots: The companies assured the players that they would play 100% safely and with real players. But in reality against common users Computer Bots (Automated Programs) Due to which common players always lost the matches and suffered huge financial losses.
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10 to 15% commission: Companies used to charge huge commission of 10% to 15% on every stake, due to which they made illegal profits worth billions of rupees.
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Illegal entry into banned states: There were about 3 crore users of these apps across India. A large portion of these were from states like Telangana, Andhra Pradesh and Tamil Nadu, where there is a legal ban on playing real money games online.
3. ₹1,035 crore spent to trap customers
According to the ED report, bonuses, cash rewards, referral offers, free tournaments, bulk SMS and phone calls were used to get new players addicted to online gaming and to re-engage old players.
Companies on these promotional campaigns More than ₹1,035 crore flowed like water. Additionally, ‘withdrawal fees’ ranging from 5% to 10% were imposed on withdrawal of winnings and users were forced to convert their withdrawals into game cash.
4. Money laundered in dividends and fixed assets
To legalize this black money (Proceeds of Crime) earned by defrauding the players, ‘money laundering’ was done through share buyback, dividend payment, bonds, mutual funds and purchase of luxury immovable properties in the name of promoters and their family trusts. ED has made it clear that many other digital evidences have been found in this case and further strict steps will be taken.