WinZO Founders Arrested in High-Profile Money Laundering Case
The Enforcement Directorate (ED) has taken decisive action against the popular gaming platform WinZO, arresting its co-founders Paavan Nanda and Saumya Singh Rathore on money laundering charges. The arrests were confirmed by officials on Thursday, following a detailed investigation into the company's financial practices.
Court Proceedings and Allegations
Both individuals were presented before a local court in Bengaluru on the night of their arrest. The court subsequently placed them in one-day custody, with a detailed hearing expected to follow. This legal action stems from allegations made by the ED on Monday, which accused WinZO of illegally "holding" ₹43 crore that belonged to gamers. These funds should have been refunded to players following the Indian government's ban on real-money gaming, which came into effect on August 22, 2025.
Background of the Accused and Company Operations
Paavan Nanda, a 38-year-old Indian entrepreneur, co-founded WinZO in 2018. Prior to this venture, he played a pivotal role in establishing Zostel, a chain of backpacker hostels, and its budget-hotel aggregator sibling, ZO Rooms. Nanda is an alumnus of Netaji Subhas Institute of Technology (NSIT) in Delhi and earned his MBA from the prestigious Indian Institute of Management, Calcutta (IIM-C) in 2014. The combined net worth of Rathore and Nanda is reported to be a substantial ₹962 crore.
The ED's investigation intensified last week with raids conducted on the premises of WinZO and another online gaming company, Gamezkraft, along with their promoters. These searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA). A central allegation from the ED is that WinZO engaged in "criminal activities and unscrupulous practices" by making customers play with algorithms without transparently disclosing that they were interacting with software, not real human opponents, in real-money games.
Furthermore, the agency alleged that WinZO was operating real-money games (RMGs) in international markets, including Brazil, the US, and Germany, from its base in India, utilizing the same platform as its Indian entity.
Financial Seizures and Company Response
In a significant financial move, the ED has frozen bonds, fixed deposits, and mutual funds valued at ₹505 crore that were "possessed" by WinZO Games under the PMLA. This action underscores the scale of the ongoing probe.
In response to these serious allegations, a WinZO spokesperson issued a statement defending the company's operations. "Fairness and transparency are core to how WinZO designs and operates its platform," the spokesperson said. The company added, "Our focus remains on protecting our users and ensuring a secure, trustworthy experience," while asserting its continued compliance with all applicable laws.
The case highlights the increasing regulatory scrutiny on the real-money gaming sector in India and raises critical questions about user protection and corporate accountability in the rapidly evolving digital entertainment industry.
