Bengaluru: Directorate of Enforcement (ED) has provisionally attached movable and immovable properties worth around Rs 442.4 crore in RummyCulture App and Others case, taking the total value of proceeds of crime attached, frozen and seized during the investigation to around Rs 2,843 crore.The latest attachment, issued on Sept 25 under Prevention of Money Laundering Act (PMLA), includes fixed deposits, commercial shops, a villa and several residential properties held in the names of family members, private family trusts and associated entities of shareholders of Gameskraft Technologies Pvt Ltd.ED initiated its investigation based on multiple FIRs registered in Telangana for cheating. It earlier conducted searches at Gameskraft Technologies’ offices and the residential premises of its directors and key employees between May 7 and 14, and again between June 20 and 21.Gameskraft Technologies and RummyTime Technologies Pvt Ltd operated online Real Money Games (RMGs), particularly rummy games and tournaments, through apps including RummyCulture, RummyPrime, Playship and RummyTime. The platforms had around three crore users nationwide, including a significant number in Telangana, Andhra Pradesh and Tamil Nadu, where online real-money gaming has been banned.According to ED, the companies earned substantial revenue by charging platform commissions of 10% to 15% on users’ staking or wagering amounts. While assuring users that the platforms were transparent and free from automated players or BOTs, the companies allegedly deployed BOTs without users’ knowledge or consent, resulting in financial losses to users and generating proceeds of crime.ED also alleged that the companies used deceptive and addictive user acquisition and retention strategies. Around Rs 1,035 crore was reportedly spent on marketing and promotional campaigns, including bonuses, referral incentives, free tournament entries and rewards aimed at encouraging continued gameplay and increased deposits.The companies also allegedly imposed restrictive withdrawal mechanisms, including a 5% to 10% withdrawal levy in certain cases, and encouraged users to convert withdrawable balances into non-withdrawable ‘Game Cash’ through ‘Super Booster’ offers. Dormant users were allegedly targeted through cash credits, promotional offers, push notifications, SMS campaigns and telemarketing calls to induce them to resume playing.Proceeds allegedly layered through investmentsED said the proceeds of crime were subsequently layered and integrated through dividend payments and share buy-backs to shareholders. The funds were allegedly concealed through investments in mutual funds, bonds, convertible notes, equity shares, movable assets and high-value immovable properties, including assets held through family trusts and associated entities.Earlier searches had resulted in movable assets worth around Rs 495 crore being frozen. Seized items included Rs 11 lakh in cash, gold and diamond jewellery, and around 2.30 kg of bullion.ED had also issued a provisional attachment order covering properties worth around Rs 1,906 crore. With the latest action, the total value of assets attached, frozen and seized stands at around Rs 2,843 crore.
