Bengaluru, Feb 19 (LatestNewsX) The Enforcement Directorate (ED) in Bengaluru has seized assets worth Rs 590 crore from Winzo Pvt. Ltd. and its subsidiary, Zo Pvt. Ltd. under Section 37A of the Foreign Exchange Management Act, 1999.
The action followed suspected violations of Section 4 of FEMA, according to an official statement released Thursday.
According to the ED, the seized assets include bank accounts, fixed deposits, mutual funds, and bonds linked to the companies.
The ED stated: “Winzo is engaged in hosting Real Money Games (RMG) and online gambling platforms, offering more than 100 games and claiming a user base of around 25 crore users. The company had reportedly made overseas direct investments in its foreign subsidiaries — M/s Winzo US Inc. in the United States and M/s Winzo SG PTE Ltd. in Singapore — by acquiring foreign exchange amounting to USD 54,255,010 (approximately Rs 492 crore).”
The ED alleged that Winzo conducted real-money gaming operations, including Bingo 2P, Bingo Turbo, Ludo, Snakes and Ladders, Mines, Solitaire, Spades, and Blackjack, in Brazil, Germany, and the United States through its US-based subsidiary.
However, investigators claim that while funds were parked abroad under the guise of overseas direct investment, the entire gaming infrastructure and operational control remained in India.
According to the agency, the foreign subsidiaries did not have regular employees or independent establishments abroad, and their day-to-day operations were allegedly managed by directors and employees based in India.
The ED further stated that accounting records, foreign bank account management, and related financial functions of the US and Singapore entities were handled from India. It also alleged that the Singapore entity earned licensing fees from a Call-break game licensed to Winzo India.
The ED investigation further revealed that the company had incorporated wholly owned subsidiaries in the US and Singapore for gambling and real-money gaming activities, which are prohibited under Rule 19(1)(b) of the Foreign Exchange Management (Overseas Investment) Rules, 2022.
The agency also cited alleged violations of Rule 9(1) of the same rules, stating that the subsidiaries were engaged in non-bona fide business activities not permissible under Indian law.
Additionally, the ED stated that online gaming activities have been banned in India under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, and alleged that the company could not have made or continued overseas investments after the ban took effect.
The agency claimed that Winzo is holding foreign currency and income generated abroad in the bank accounts of its US and Singapore subsidiaries from prohibited activities, amounting to Rs 590 crore, in contravention of FEMA provisions.
Further investigation into the case is underway.
mka/dan
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