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Gameskraft Founders Challenge ED Arrests
14 May
Summary
- ED froze ₹526 crore bank deposits and seized jewelry.
- Founders allege ED actions are 'mala fide' and illegal.
- Karnataka High Court questions basis of fresh ECIR.
The Karnataka High Court is examining petitions filed by the founders of online gaming company Gameskraft, who are challenging their arrest and remand. The Enforcement Directorate (ED) has taken action, freezing bank deposits amounting to ₹526 crore and seizing jewelry valued at ₹3.5 crore as part of a Prevention of Money Laundering Act (PMLA) case.
During a hearing on May 14, 2026, the founders' legal counsel argued that the ED's actions were 'mala fide.' They contended that a fresh money laundering case was initiated despite an earlier Enforcement Case Information Report (ECIR) having been stayed by the High Court on January 22, 2026. The founders' arrest was deemed illegal, and the validity of subsequent proceedings was questioned.
The ED opposed these arguments, asserting that the current ECIR is distinct and relates to different gaming platforms. However, the High Court observed that arrest powers under PMLA must be substantiated by substantive material. The court has directed the ED to file its objections by May 19, the same date the founders' extended custody is set to expire.
