The Karnataka High Court has issued notice to the Enforcement Directorate on a petition filed by WinZO Games Pvt Ltd, challenging the legality of search and seizure operations conducted by the agency between 18 November and 22 November 2025 at the company’s offices in connection with a money‑laundering investigation. The Court scheduled the matter for further hearing on 15 December 2025.
WinZO contends that the multi‑day raids lacked the statutory justification required under the Prevention of Money Laundering Act, 2002, arguing that the Enforcement Directorate failed to demonstrate the mandatory “reasons to believe” before initiating the searches. The company also alleges that statements recorded during the raids were not captured on CCTV despite existing surveillance, raising concerns over procedural fairness. WinZO seeks to quash the panchanama, set aside consequent actions including asset‑freezing orders, and halt further enforcement steps until the legality of the raids is determined.
The background of the case involves multiple complaints against WinZO and its founders alleging cheating, blocking of user accounts, misuse of PAN and KYC details, impersonation, and irregularities in real‑money gaming operations. Acting on these complaints, the Enforcement Directorate registered an ECIR under the Prevention of Money Laundering Act and conducted the searches, subsequently freezing assets worth approximately ₹505 crore, including bank balances, bonds, fixed deposits, and mutual funds, which the agency claims constitute proceeds of crime.
The Enforcement Directorate’s case alleges that WinZO manipulated its gaming platform by using algorithms or software to pit customers against non‑human opponents without their knowledge, generating illicit gains when users lost. It is further alleged that withdrawals were restricted or blocked, and that a substantial sum — reportedly ₹43 crore belonging to gamers — remained unreturned despite a nationwide ban on real‑money gaming effective from August 2025.
By approaching the High Court, WinZO seeks judicial scrutiny of whether the Enforcement Directorate complied with procedural prerequisites under the Prevention of Money Laundering Act before conducting its enforcement actions. The notice issued by the Court reflects the seriousness with which procedural safeguards are being evaluated.
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