Bengaluru court extends ED custody of 3 Gameskraft founders till May 19

A special court in Bengaluru has remanded three directors of online gaming platform operator Gameskraft to an additional seven days of Enforcement Directorate (ED) custody in connection with an alleged money laundering investigation linked to purported manipulation of online real-money gaming platforms.

The accused — Vikas Taneja, Prithvi Raj Singh and Deepak Singh Ahlawat — were produced before the Bengaluru Principal City Civil and Sessions Court after the expiry of their earlier custody period. Special court judge Shankarappa Nimbanna Kalkani allowed the ED’s remand plea and extended the agency’s custody of the three executives until May 19.

The ED had arrested the three executives on May 7 as part of its ongoing probe under the Prevention of Money Laundering Act (PMLA). Vikas Taneja was first produced before the court on May 8 and remanded to five days of ED custody. Deepak Singh Ahlawat and Prithvi Raj Singh were subsequently produced before the court the following day and similarly remanded for five days.

With the initial custody period ending on Wednesday, the agency again approached the court seeking an extension, arguing that further custodial interrogation was necessary for the investigation.

Jurisdiction Dispute

Senior advocates C.V. Nagesh, Sajan Poovayya and Sandesh Chouta, appearing for Gameskraft founders, argued before the court that the ED lacked jurisdiction to arrest the executives because the predicate FIRs in the matter were registered in Telangana.

The defence contended that the arrests were therefore illegal and outside the agency’s territorial authority.

However, ED special public prosecutors Madhu Rao and D.M. Maheshwari opposed the contention, arguing that the agency was well within its powers to investigate since Gameskraft is headquartered in Bengaluru.

The court accepted the ED’s submissions and granted the extension of custody.

Bail Pleas Kept Pending

The accused have separately filed bail applications before the court. However, since the court extended their ED custody, the bail petitions have effectively been kept in abeyance for now.
Meanwhile, the Karnataka High Court is scheduled to hear petitions filed by Taneja, Prithviraj Singh and Deepak Singh Ahlawat challenging the legality of their arrests. The petitions seek a declaration that the arrests made by the ED are unlawful.

ED Alleges Diversion of ₹250 Crore

According to the ED, Deepak Singh Ahlawat, along with other founders and directors of Gameskraft and former chief financial officer Ramesh Prabhu, allegedly diverted around ₹250 crore under the pretext of investing the funds in futures and options trading and mutual funds.

The agency has alleged that the funds were transferred illegally as part of a broader financial irregularity linked to the company’s operations.

The ED has further accused the company of defrauding real-money gaming users through its online gaming platforms. Investigators allege that the accused violated the platform’s terms of service by unlawfully blocking player accounts and digital wallets, causing financial losses to users.

The case adds to the increasing regulatory and enforcement scrutiny faced by India’s online gaming sector, particularly real-money gaming platforms, amid concerns over financial compliance, user protection and alleged manipulation of player funds.