Karnataka High Court Issues Notice To ED On WinZO's Plea Challenging Search, Seizure In PMLA Probe

The Karnataka High Court on Monday issued notice to the Enforcement Directorate (ED) on a petition filed by an online gaming company, Winzo Pvt Ltd, seeking to declare that the search and seizure carried out by the ED at its office between 18.11.2025 and 22.11.2025 in furtherance of an investigation in a money laundering case is illegal and void.

Justice Suraj Govindaraj issued notice and directed the ED to file its response to the petition and posted the matter for further hearing on December 15.

A grievance was raised by the petitioner that statements of the promoters/employees have been intermittently recorded and not captured in the CCTV installed at the petitioner's premises by the petitioner and it could be used against them during the bail applications filed before the bail court.

It was also contended that there is no recording of the search and seizure as mandated under section 5 of BNSS, and there is a violation in that regard. Moreover, if the CCTV, which has been seized by the respondents, establishes that the statement had been recorded intermittently and on ungodly hours.

To which 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 counsel for ED pointed to the court that other than the CCTv footage there would be other considerations also before the bail court while considering the bail applications and also consideration for arrest and search and seizure. To which the court said “That you can always urge, their contention is only that statements recorded at 3 am when they are not thinking straight.”

As per the press release issued by ED, it has on November 26, 2025 arrested Paavan Nanda and Ms. Saumya Singh Rathore, Directors of M/s WinZO Games Pvt. Ltd. under the provisions of Prevention of Money Laundering Act (PMLA), 2002, for their alleged involvement in the offence of money laundering.

Recently ED, Bengaluru Zonal Office has conducted search operations at the office premises of M/s. WinZO Games Pvt. Ltd. and the residential premises of Ms. Saumya Singh Rathore, based on the FIRs filed against M/s WinZO Games Pvt. Ltd and others on the grounds of cheating, blocking of accounts, impersonation, misuse of PAN etc.

ED investigation revealed that M/s. WinZO Pvt Ltd was engaged in criminal activities and fraudulent practices i.e. customers were made to play with algorithms/software without being made aware of the fact that they are playing with software/algorithms and not with humans in real money games. WinZO has also prevented/limited withdrawals of monies held by the customers in the wallets of M/s WinZO pvt ltd.

It is alleged that M/s. WinZO Pvt Ltd also generated Proceeds of Crime (POC) in the form of bet amounts placed and lost by real customers through the unscrupulous use of such algorithms/software which are received by the entity in its bank accounts. So far, the POC amounting to Rs.505 Crore has been frozen in the form of bank balances, bonds, FDRs, mutual funds under section 17 1A of the PMLA, 2002.

The plea before the court seeks to quash and set aside the search and seizure carried out. Declare that all actions undertaken by the respondent as a consequence of and in furtherance of the impugned search and seizure carried out for freezing the petitioner's bank accounts, escrow accounts, and other financial assets/instruments.

By way of interim relief it has sought to stay the operation of the impugned freezing orders dated 21.11.2025 passed by the respondent. Direct the respondent to produce before this hon'ble court the reasons to believe that necessitated conduct of the impugned search and seizure. Further, to stay all further actions of the respondent arising out of or relatable to the impugned search and seizure

Case Title: WINZO PVT LTD AND DIRECTORATE OF ENFORCEMENT

Case No: WP 36998/2025