ED seizes bank accounts, FDs, bonds worth Rs 590 crore under FEMA in crackdown against Winzo group

New Delhi [India] February 19 (ANI): The Enforcement Directorate (ED) has seized bank accounts, fixed deposits, mutual funds and bonds of Winzo Pvt Ltd and its subsidiary Zo Pvt Ltd of Rs 590 crore under the Foreign Exchange Management Act (FEMA), 1999, the agency said on Thursday.
ED said Winzo was into the business of hosting Real Money Games (RMG) and gambling, offering more than 100 number games with a claimed user base of about 25 crore users.
It further said that Winzo has made overseas direct investment in its foreign subsidiaries - Winzo US Inc, USA and Winzo SG PTE Ltd, Singapore, by acquiring foreign exchange to the tune of USD 54,255,010 (equivalent to Rs 492 crore).
ED's Bengaluru zonal office seized the assets under Section 37A of the Foreign Exchange Management Act (FEMA), 1999, for contraventions under Section 4 of FEMA, 1999.
The agency pointed out that Winzo has been conducting real-money gaming operations(online gambling) by offering games such as Bingo 2p, Bingo Turbo, Ludo, Snakes and Ladders, Mines, Solitaire, Spades and Black Jack, etc., in Brazil, Germany, and the United States through its U.S-based subsidiary - Winzo US Inc, USA.
"Winzo has parked its funds abroad under the guise of overseas direct investment, however, the entire gaming infrastructure for these overseas operations is shared and controlled from India," stated the ED.
"The foreign entities do not have any regular employees or independent establishments abroad to carry out their operations."
In a statement, the ED said, the complete management and control of these entities, including their day-to-day functioning, is exercised by the directors and employees from India.
Further, all accounting records, management of foreign bank accounts, and related financial functions of the US and Singapore entities are handled from India.
"WinZO Singapore is earning a licensing fee from the call-break game by licensing it to WinZO India," it added.

Further, ED investigation revealed that Winzo Pvt Ltd also incorporated 100 per cent subsidiaries in the USA and Singapore, which are into gambling and real money games, which are prohibited as per Rule 19 (1) (b) of the Foreign Exchange Management (Overseas Investment) Rules, 2022.
Further, the EDcsai, the foreign subsidiaries of Winzo games, are into non Bonafide Business activity (not permissible under any law in force in India) in contravention of rule 9(1) of the FEM (Overseas Investment) Rules, 2022.
The online games have been banned in India by the Promotion and Regulation of Online Gaming Act, 2025 (PROG) Act, 2025, and therefore, Winzo could not have made overseas investments or continued investments after the enforcement of the online gaming ban in India.
Winzo is holding foreign currency and foreign income generated abroad in the bank accounts of its USA and Singapore subsidiaries from the prohibited activities in contravention of section 4 of FEMA, 1999 to the extent of Rs 590 crore.

The fresh action came after the ED recently attached a balance in the foreign bank accounts, maintained in the USA and Singapore, amounting to USD 55.69 million (Rs 505 crore), held in the names of overseas shell companies in the Winzo App case. (ANI)