WinZO Founders ED Arrest: There was a sudden stir in the world of online gaming when the Enforcement Directorate arrested Pawan Nanda and Soumya Singh, two co-founders of Winzo gaming platform. The agency alleges that the company diverted huge amounts of money through money laundering and also withheld the players’ money.

As the investigation progressed, it came to light that properties worth about Rs 505 crore to Vinjo have been frozen. This amount was invested in different places in the form of bonds, fixed deposits and mutual funds.

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ED claims that even after the ban on real money gaming, the company did not return Rs 43 crore to the gamers. The players were supposed to get a refund of this amount, but the company kept it with them for a long time.

On the basis of this allegation, both the founders were arrested and presented in the local court of Bengaluru, from where they were sent to ED custody for one day. It has not been confirmed yet when the next hearing will take place, but the scope of the agency’s investigation is continuously increasing.

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Winzo’s name has been counted among the largest social gaming platforms in the country. It was started by Pawan Nanda and Soumya Singh in the year 2018. The company has been claiming that more than 100 skill-based games like carrom, ludo, chess and many puzzle games are available on its app.

About 25 crore users use it in India, while worldwide its number is said to be more than 250 million.

After the ban on real money gaming, the platform introduced TV episodes, short drama content and some other services on free mode for which users are charged. Even cricketer Mahendra Singh Dhoni has been advertising this app, which has increased its credibility.

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However, behind these shiny claims, the dark side of the industry has also been continuously coming to the fore. Experts say that every year players in the country lose about Rs 20 thousand crores in such games.

Many gaming servers are run overseas, making them difficult to track. In states like Karnataka, Telangana and Tamil Nadu, there has been an alarming increase in the number of suicide cases after losing money in online gaming in the last two years, in many states this number has reached 30.

Even after the ban and strict laws on real money gaming, this sector is still involved in many gray-zone activities. The action against Vinjo is not just a case, but a glimpse of a bigger crisis, which has affected more than 45 crore Indians in one way or the other.

The investigation is now moving in the direction of how the money was diverted, who was benefited and whether it was part of a bigger network.

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