The Karnataka High Court on Monday issued notice to the Enforcement Directorate (ED) on a petition filed by online gaming company WinZO. The petition seeks to declare illegal and void the search and seizure conducted by the ED at WinZO’s office between 18 and 22 November 2025 as part of a money laundering investigation.
Justice Suraj Govindaraj issued notice and directed the ED to file its response, posting the matter for further hearing on 15 December.
A grievance was raised by the petitioner that statements of promoters and employees were intermittently recorded and not fully captured by the CCTV installed at its premises, which could be used against them during bail proceedings. The petition also contended that there was no recording of the search and seizure as mandated under Section 5 of BNSS.
To this, the bench said, “I am of the considered opinion that this apprehension on part of the petitioner can be assuaged by directing the respondent to produce the CCTV footage before the bail court when the bail application is being considered. The bail court could decide on the bail application as per the documents and recordings which are placed before the said court.”
The ED counsel noted that other factors beyond CCTV footage would be considered by the bail court, including arrest and search and seizure actions. The court added, “That you can always urge, their contention is only that statements recorded at 3 am when they are not thinking straight.”
According to an ED press release, Paavan Nanda and Saumya Singh Rathore, directors of M/s WinZO Games, were arrested on 26 November 2025 under the Prevention of Money Laundering Act (PMLA), 2002, for alleged involvement in money laundering.
ED searches had been conducted at WinZO’s office and Rathore’s residence based on FIRs citing cheating, account blocking, impersonation, and PAN misuse. Investigations revealed WinZO engaged in fraudulent practices, making customers play real-money games against software algorithms without disclosure. Withdrawals from customer wallets were restricted, and proceeds of crime from bets, amounting to Rs. 505 crore, were frozen in bank balances, bonds, FDRs, and mutual funds under Section 17 1A of the PMLA.
The petition seeks to quash and set aside the search and seizure, declare all related actions void, and stay operations of freezing orders dated 21 November 2025. It also requests the court to direct the ED to provide the reasons behind the search and seizure and to stay further actions arising from it.
