Karnataka High Court Rules on Gameskraft Founders’ Arrest
The Karnataka High Court has ruled that the arrest of Gameskraft Technologies’ founders, Deepak Singh, Vikas Taneja, and Prithviraj Singh, by the Directorate of Enforcement (ED) was unlawful. In a decision delivered on Tuesday, Justice M Nagaprasanna ordered the immediate release of the individuals from custody, marking a significant development in the ongoing legal proceedings against the company.
Background of the Case
The case, identified as Deepak Singh v Directorate of Enforcement and connected matters, has been closely monitored since the arrest of the founders in May. The arrests occurred in Gurgaon, with the individuals subsequently being remanded into the ED’s custody in Bengaluru. The ED had charged these directors in connection with a money laundering investigation based on three first information reports (FIRs) filed in Telangana in early 2026.
Allegations by the Enforcement Directorate
The Directorate of Enforcement accused Gameskraft of operating online gaming platforms that engaged in fraudulent practices, allegedly manipulating gameplay, deceiving users, and laundering illicit gains through false business expenses and cash transactions. The ED claimed that the platforms, including RummyCulture Technologies, enticed players with bonuses and referral incentives, creating an illusion of easy earnings. New users were reportedly allowed to win small amounts initially to boost their confidence, encouraging them to make larger deposits.
The allegations further included claims of unfair gaming practices, such as rigged games, suspected use of algorithms and bots, card duplication, and patterns favoring certain players. Users also reported issues like forced logouts, blocked user IDs, and collusion, leading to significant financial losses. Additionally, the ED accused the founders, along with former CFO Ramesh Prabhu, of diverting and laundering approximately ₹250 crore under the pretense of investments in futures, options, and mutual funds.
Court’s Decision and Legal Representation
Justice M Nagaprasanna’s ruling emphasized that the arrest of the petitioners was contrary to law, and directed the court registry to expedite their release by notifying the prison authorities. Senior Advocate S Muralidhar represented Deepak Singh, while Senior Advocates Sajan Poovayya and Sandesh Choutha represented Prithviraj Singh and Vikas Taneja. Advocate Suhaan Mukherji also advocated for the petitioners, with the plea filed through Advocate Sampreeth V. Special Public Prosecutor Madhu N Rao appeared on behalf of the ED.
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The High Court has requested the ED to provide justification for the arrests, with a detailed judgment expected to follow. This decision is a pivotal moment in the ongoing litigation surrounding Gameskraft, as the company continues to face legal scrutiny over its operations.
