Notice Issued to ED Regarding Search and Seizure Operations Against Winzo: Karnataka HC

In response to the writ petition filed by WinZO Pvt. Ltd. challenging the multi-day raids conducted by the Enforcement Directorate (ED) from November 18 to 22 at its Eldeco Centre office, the Karnataka High Court has issued notice to the agency directing it to produce the CCTV footage of the search. The Delhi-based online gaming company argued that the raids—undertaken as part of a money-laundering investigation—were “illegal, void, and without statutory justification” as they lacked the mandated “reasons to believe” under Section 17 of the Prevention of Money Laundering Act (PMLA).

The company alleged that statements were recorded under coercive conditions, including late-night questioning. Its petition sought a declaration that the search and the resulting panchanama were unlawful, the expunging of certain portions of the panchanama, and the quashing of the ED’s subsequent freezing orders dated November 21.

WinZO has further requested the court to lay down procedural guidelines governing the exercise of search-and-seizure powers under the PMLA to prevent institutional overreach. It has also sought the forensic production of its seized CCTV-DVR unit and disclosure of the ED’s stated “reasons to believe” that justified the prolonged search.

Meanwhile, WinZO’s app and website have ceased operations, citing “technical issues,” even as the ED has frozen assets worth ₹505 crore, including deposits, fixed deposits, bonds, and mutual funds, alleging these constitute “proceeds of crime.” The agency has also claimed the discovery of a “PPP” (past performance of player) algorithm purportedly used to influence match outcomes, generating illicit gains of approximately ₹177 crore over 14 months. Additionally, the ED alleges that WinZO retained ₹43 crore in gamer funds despite the Union government’s ban on real-money gaming that took effect on August 22, 2025.