The Enforcement Directorate's Bangalore Zonal Office, on Thursday, February 19, seized the bank accounts, fixed deposits, mutual funds, bonds of WinZo and its subsidiary Zo private limited of value Rs. 590 Crore under Section 37A of the Foreign Exchange Management Act (FEMA), 1999 for contraventions under section 4 of FEMA, 1999, the agency said in a press release.
Earlier in the day, the probe attached a balance in the foreign bank accounts, maintained in the USA and Singapore, amounting to USD 55.69 million ( ₹505 crore), held in the names of overseas shell companies in the Winzo App case, reported ANI.
ED's Bengaluru zonal office attached these movable properties held in the names of overseas shell companies of Winzo Pvt Ltd, Winzo US Inc, USA and Winzo SG Pte Ltd, Singapore; operated and controlled by Paavan Nanda and Saumya Singh Rathore. Also Read | ED chargesheets online gaming app WinZO, alleges players duped of ₹734 cr using bots
The investigation agency further said that Winzo has made overseas direct investment in its foreign subsidiaries - Winzo US Inc, USA and Winzo SG PTE Ltd, Singapore, by acquiring foreign exchange to the tune of USD 54,255,010 (equivalent to ₹492 crore).
In a statement, the ED said, “Winzo has been conducting real-money gaming operations(online gambling) by offering games such as Bingo 2p, Bingo Turbo, Ludo, Snakes & Ladders, Mines, Solitaire, Spades and Black Jack, etc., in Brazil, Germany, and the United States through its U.S-based subsidiary - M/s Winzo US Inc, USA. Winzo has parked its funds abroad under the guise of overseas direct investment, however, the entire gaming infrastructure for these overseas operations is shared and controlled from India."
“Further, ED investigation revealed that Winzo Pvt ltd also incorporated 100% subsidiary in the USA and Singapore, which are into gambling/real money games, which are prohibited as per Rule 19 (1) (b) of the Foreign Exchange Management (Overseas Investment) Rules, 2022. Further, the Foreign Subsidiaries of Winzo games are into non Bonafide Business activity (not permissible under any law in force in India) in contravention of rule 9(1) of the FEM (Overseas Investment) Rules, 2022.”
It said, “The online games have been banned in India by the Promotion and Regulation of Online Gaming Act, 2025 (PROG) Act, 2025 and therefore Winzo could not have made overseas investments or continued investments after enforcement of online gaming ban in India. Winzo is holding, foreign currency and foreign income generated abroad in the bank accounts of its USA and Singapore subsidiaries from the prohibited activities in contravention of section 4 of FEMA, 1999 to the extent of Rs. 590 Crore.”
