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What is the story about?
A Bengaluru court on Tuesday, December 30, granted bail to Soumya Rathore, co-founder of online gaming platform WinZO, while denying bail to the company’s other co-founder, Paavan Nanda, in a money-laundering case being probed by the Enforcement Directorate (ED).
The ED had arrested both founders on November 26 in connection with alleged violations under the Prevention of Money Laundering Act (PMLA). The agency has accused the company and its promoters of diversion of funds and generating wrongful gains of ₹177 crore.
Granting bail to Rathore, the Bengaluru court cited special protection available to women under Section 45 of the PMLA. The court held that, given the statutory safeguards, Rathore was entitled to relief at this stage of the proceedings.
However, the court rejected the bail plea of Paavan Nanda, observing that the scope of the investigation has widened and that custodial detention was still required as the probe progresses.
According to the ED, its investigation had earlier uncovered alleged manipulation on the WinZO platform, including the
use of deceptive algorithms
that allegedly tilted outcomes against gamers, leading to significant proceeds of crime. The agency has claimed that these funds were subsequently laundered through various channels.
As part of the investigation, the ED has conducted searches at multiple premises linked to WinZO and its promoters across cities, and has also taken steps to attach and freeze assets linked to the alleged proceeds of crime.
The case against the founders remains under investigation, with the ED expected to continue its probe and file further submissions before the PMLA court in due course.
The ED had arrested both founders on November 26 in connection with alleged violations under the Prevention of Money Laundering Act (PMLA). The agency has accused the company and its promoters of diversion of funds and generating wrongful gains of ₹177 crore.
Granting bail to Rathore, the Bengaluru court cited special protection available to women under Section 45 of the PMLA. The court held that, given the statutory safeguards, Rathore was entitled to relief at this stage of the proceedings.
However, the court rejected the bail plea of Paavan Nanda, observing that the scope of the investigation has widened and that custodial detention was still required as the probe progresses.
According to the ED, its investigation had earlier uncovered alleged manipulation on the WinZO platform, including the
As part of the investigation, the ED has conducted searches at multiple premises linked to WinZO and its promoters across cities, and has also taken steps to attach and freeze assets linked to the alleged proceeds of crime.
The case against the founders remains under investigation, with the ED expected to continue its probe and file further submissions before the PMLA court in due course.
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