The Enforcement Directorate in Bengaluru has confiscated assets valued at Rs 590 crore from Winzo Pvt. Ltd. and its subsidiary, Zo Pvt. Ltd., under the Foreign Exchange Management Act’s Section 37A. The action was taken due to suspected violations of Section 4 of FEMA, as per an official statement released on Thursday.
The seized assets comprise bank accounts, fixed deposits, mutual funds, and bonds associated with the companies. Winzo, known for hosting Real Money Games and online gambling platforms with over 100 games and an alleged user base of around 25 crore users, reportedly made significant overseas direct investments in its foreign subsidiaries in the United States and Singapore.
The Enforcement Directorate accused Winzo of conducting real-money gaming operations in Brazil, Germany, and the United States through its US-based subsidiary. Despite parking funds abroad for overseas direct investment, the gaming infrastructure and operational control were purportedly retained in India. Investigations revealed that the foreign subsidiaries lacked regular employees or independent establishments abroad, with day-to-day operations managed by individuals in India.
The agency’s probe disclosed that Winzo had established wholly owned subsidiaries in the US and Singapore for gambling and real-money gaming activities, violating specific provisions of the Foreign Exchange Management (Overseas Investment) Rules, 2022. Alleged violations of the Promotion and Regulation of Online Gaming Act, 2025, were also cited, with claims that the company held prohibited foreign currency and income in contravention of FEMA regulations.
