Policy · Consumer Internet & Media

Karnataka HC stays ED investigation against Gameskraft

By Startup Enthusiast · 22 January 2026

What they do

Gameskraft is a real money gaming platform facing legal scrutiny from the Enforcement Directorate (ED)

The ED investigation was stayed by the Karnataka High Court after the company argued that the original FIR was closed due to lack of evidence

The ED claims six other FIRs against Gameskraft are still under investigation, and the case will be revisited on February 6

The Karnataka High Court has stayed the Enforcement Directorate (ED) investigation against real money gaming (RMG) startup Gameskraft.
The stay was granted after Gameskraft and Nirdesa Networks, the parent company of Pocket52, filed a plea to quash the money laundering investigation.
Gameskraft argued that the original FIR against it was closed in July due to lack of incriminating evidence.
The court agreed that the investigation was baseless without the original FIR, but the ED stated six other FIRs against the company are still under investigation.
The ED has been allowed to file a response and present the pending FIRs in the Enforcement Case Information Report.
The next hearing for the case is scheduled for February 6.
The ED's investigation stems from allegations of cheating and money laundering linked to Pocket52 and Gameskraft.
In November, the ED searched offices and residences in Bengaluru and Gurugram, seizing mobile phones, laptops, and backed-up company data.
The agency also froze eight escrow accounts holding around INR 18.57 Cr, claiming the funds were suspected proceeds of crime.
The probe follows an FIR alleging large-scale fraud on the Pocket52 platform, including manipulated game outcomes and withdrawal restrictions.

The ED's investigation into Gameskraft is part of a broader crackdown on real money gaming under the Promotion and Regulation of Online Gaming Act, enacted in August 2025.
The company has faced internal governance issues, including a CFO accused of siphoning funds for personal investments and F&O trading.
This led to an INR 250 Cr write-off for Gameskraft and the layoff of over 400 employees out of a 600-person payroll.

The company has faced scrutiny from the Enforcement Directorate (ED) over allegations of cheating and money laundering.
The ED has seized mobile phones, laptops, and backed-up company data during its investigation.
The agency also froze eight escrow accounts holding around INR 18.57 Cr, claiming the funds were suspected proceeds of crime.
The company has been grappling with internal governance issues, including a CFO accused of siphoning funds for personal investments.