The Karnataka High Court on Tuesday, June 16, declared the arrest of three founders of online gaming company Gameskraft by the Enforcement Directorate (ED) in a money laundering case illegal and directed their immediate release from prison.
Justice M Nagaprasanna, while allowing petitions filed by Deepak Singh, Prithvi Raj Singh, and Vikas Taneja, ruled that their arrests were contrary to law. “The writ petitioners are allowed, arrest is declared contrary to law. As a consequence thereof, the petitioners shall be set at liberty forthwith,” the court said.
The judge also directed the court registry to communicate the order to prison authorities to facilitate their release. A detailed copy of the judgment is awaited.
The ED had arrested the three founders in connection with a money laundering investigation linked to Gameskraft Technologies Ltd and its associated entities. The agency had initiated proceedings under the Prevention of Money Laundering Act (PMLA) based on multiple FIRs alleging cheating, fraud, and other offences against the company and its promoters.
According to the ED, the company operated online real-money gaming platforms, including RummyCulture and RummyTime. Several FIRs registered against the company were also linked to alleged suicides of individuals who reportedly suffered losses on the gaming platforms.
On May 7, the ED conducted searches at 17 locations across Karnataka and the National Capital Region (NCR) connected to Gameskraft group companies, their founders, and employees. During the searches, officials reportedly seized several incriminating documents.
The agency said its investigation revealed prima facie evidence of money laundering by the founders, leading to their arrests under Section 19 of the PMLA.
Deepak Singh and Prithvi Raj Singh were arrested in the NCR and later brought to Bengaluru on transit remand after the ED obtained court permission. Vikas Taneja was arrested in Bengaluru and produced before the jurisdictional court.
