A Bengaluru sessions court has granted bail to WinZO co-founder Saumya Singh Rathore, while denying similar relief to her fellow co-founder Paavan Nanda, in a money-laundering case being investigated by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).
The order, passed by the Principal City Civil and Sessions Court in Bengaluru, has drawn attention not only because of the divergent outcomes for the two founders, but also due to the court’s reliance on a specific statutory safeguard available to women accused under the PMLA.
The ED arrested Saumya Singh Rathore and Paavan Nanda on November 26, 2025, following searches conducted at their residences and business premises. The arrests came after the agency registered a money-laundering case earlier in November, based on multiple predicate offences linked to FIRs filed in different jurisdictions.
Following their arrest, both founders were remanded to ED custody and later to judicial custody as investigators sought time to examine financial trails, digital infrastructure, and corporate structures linked to WinZO.
On December 26, 2025, the sessions court heard their bail pleas together but delivered separate outcomes, granting bail to Rathore while rejecting Nanda’s application.
What the ED Has Alleged
According to the Enforcement Directorate, the case relates to alleged large-scale financial irregularities connected to WinZO’s online gaming operations.
The agency has alleged that:
- Certain gaming mechanisms and algorithms were used in a manner that allegedly generated illegal or wrongful gains.
- Proceeds from these activities were allegedly layered and diverted, including through overseas entities.
- Digital infrastructure and payment channels were allegedly used to disguise the origin and movement of funds.
- The total alleged proceeds of crime run into hundreds of crores of rupees, though the company has disputed these figures.
The ED has also frozen assets linked to the case and stated that the investigation is still at an active stage.
WinZO and its founders have consistently denied wrongdoing and maintained that the platform operates lawful, skill-based games in compliance with applicable laws.
Why Bail Was Granted to Rathore but Denied to Nanda
The key legal distinction in the court’s order lies in Section 45 of the PMLA.
Under normal circumstances, bail under the PMLA is subject to stringent “twin conditions,” requiring the court to be satisfied that the accused is not guilty and is unlikely to commit an offence while on bail. However, a proviso to Section 45 relaxes these conditions for certain categories of accused, including women.
The court held that Saumya Singh Rathore was entitled to this statutory protection, noting that she had already undergone custodial interrogation and that continued detention was not necessary at this stage.
In contrast, the court found that Paavan Nanda did not meet the threshold required for bail, particularly given the ongoing nature of the investigation. The judge observed that releasing him at this point could potentially affect the probe, and therefore allowed the ED to retain him in custody for further questioning.
Why This Case Matters for the Gaming Industry
WinZO is a well-known name in India’s online gaming ecosystem, operating across multiple formats including casual multiplayer and skill-based games. The case comes at a time when Indian regulators and enforcement agencies are intensifying scrutiny of online gaming and real-money platforms, especially around financial compliance and consumer protection.
The Indian Union Government had banned RMG and classified it under gambling category on August 22nd, 2025 while giving specific distinction to esports and casual gaming.
While Rathore’s bail offers temporary relief to one of the company’s top executives, Nanda’s continued custody underscores the seriousness with which authorities are treating the allegations. The case is being closely watched by founders, investors, and operators across India’s gaming sector, as it could influence how enforcement agencies interpret compliance obligations in digital gaming businesses.
With Saumya Singh Rathore released on bail and Paavan Nanda still in custody, the ED is expected to continue its investigation into early 2026. Further hearings are likely as the agency files additional material before the court.
Any final determination on guilt or innocence will depend on the outcome of trial proceedings, which are expected to take time given the financial and technical complexity of the case.
For now, the split bail order marks a significant development in one of the most closely followed legal cases involving India’s gaming startup ecosystem.