Gameskraft Crisis- 5 Shocking ED Allegations Against Founders

Bengaluru-based Gameskraft Technologies is going through one of the toughest phases in its journey after facing legal troubles, financial losses, government investigations, and a nationwide gaming ban. The company, once known as a major player in India’s online gaming industry, is now under heavy scrutiny from authorities.

Founded in 2017, Gameskraft operated popular real-money gaming platforms like RummyCulture, Gamezy, Rummy Time, and Pocket52. Over the years, it became one of the leading names in India’s skill-gaming market. However, several controversies and investigations have now pushed the company into deep trouble.

Rs 21,000 Crore GST Dispute Created Big Trouble

Gameskraft first came into the spotlight after receiving a huge GST notice from the Directorate General of GST Intelligence (DGGI) in September 2022. The tax department accused the company of promoting online betting and demanded nearly Rs 21,000 crore in unpaid GST.

According to officials, the company should have paid 28% GST on betting amounts worth around Rs 77,000 crore. Gameskraft denied the allegations and said its games were skill-based, not gambling-based. The company argued that skill games should attract only 18% GST.

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The case reached the Karnataka High Court, where Gameskraft got temporary relief. Later, the matter also went to the Supreme Court and became one of the biggest legal battles in India’s online gaming sector.

Gaming Ban Forced Company to Shut Services

The company’s problems became worse after the Indian government passed the Promotion and Regulation of Online Gaming Act, 2025. The new law banned all online real-money gaming activities across the country.

After the law came into effect, Gameskraft stopped all “Gameplay” and “Add Cash” services from August 21, 2025. The company also said it would follow the law and would not challenge the ban in court.

The shutdown badly affected the business and employees. Gameskraft laid off more than 400 employees, which was over half of its total workforce. The company said it provided severance packages, extended health insurance, and job support to affected workers.

Industry experts believe the gaming ban hurt many online gaming companies, but Gameskraft was among the most affected because its business mainly depended on real-money gaming.

Former CFO Accused of Rs 250 Crore Fraud

At the same time, Gameskraft was also dealing with an internal financial fraud case involving its former Chief Financial Officer Ramesh Prabhu.

An internal audit reportedly found that Prabhu diverted company money into unauthorised futures and options trading between 2019 and 2025. The company estimated losses of more than Rs 250 crore due to these trades. Reports said the former CFO admitted to the issue through an email before disappearing from the company office in March 2025. Gameskraft later filed an FIR and started an investigation.

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Even though the company earned Rs 4,009 crore in revenue during FY25, its net profit fell by 25% to Rs 706 crore. Gameskraft blamed the drop on the higher GST burden and a one-time accounting loss linked to the unauthorised trades.

ED Raids and Asset Seizures Increased Pressure

The Enforcement Directorate (ED) later started investigating Gameskraft based on several police complaints related to cheating, fraud, and heavy financial losses suffered by users. Earlier, the ED had frozen escrow accounts worth Rs 18.57 crore during its initial investigation. But the probe became much bigger in May 2026.

Between May 7 and May 13, the ED carried out raids at 17 locations linked to the company and its executives in Karnataka and Delhi-NCR. During the searches, officials froze assets worth Rs 526.49 crore, including bank deposits, mutual funds, and bonds. They also seized gold jewellery worth Rs 3.5 crore and Rs 11 lakh in cash.

The ED alleged that Gameskraft used bots and manipulated gaming algorithms to make genuine users lose money unfairly. The agency also claimed the company changed geo-location data to offer real-money gaming services in states where such activities were restricted. According to investigators, users suffered losses of more than Rs 1,154 crore because of these practices.

Founders Challenge Arrests in High Court

The case took another major turn on May 8, 2026, when the ED arrested Gameskraft co-founders Deepak Singh, Prithvi Raj Singh, and Vikas Taneja under the Prevention of Money Laundering Act (PMLA). The ED accused the founders of working with the absconding former CFO to launder nearly Rs 250 crore through futures and options investments. A Bengaluru court later sent Vikas Taneja to five days of ED custody.

The founders later moved the Karnataka High Court, claiming their arrests were illegal. Their lawyers argued that the company had already stopped operations after the gaming ban and was cooperating with authorities.

On May 12, 2026, the Karnataka High Court issued a notice to the ED and asked for its response. The next hearing in the case is scheduled for May 14, 2026. The case is expected to become an important turning point for India’s online gaming industry, especially in areas related to taxation, regulation, and financial compliance.