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Legal Challenge Over ED Investigation
Saumya Rathore, co-founder and director of WinZo Games Pvt Ltd, has filed a plea with the Karnataka High Court, challenging the Enforcement Directorate's (ED) decision to conduct its money laundering investigation from Bengaluru. The gaming company executive argues that the probe and related court proceedings rightfully belong in Delhi, where WinZo's primary operations are based.
Arguments on Jurisdiction
Rathore's senior counsel, Sajan Poovayya, contended that WinZo's bank accounts, employees, and core business activities are all situated in Delhi. He questioned the ED's choice of Bengaluru for the investigation, suggesting it was arbitrary. Poovayya emphasized that the ED, despite being a pan-India agency, should adhere to logical jurisdictional principles.
ED's Counter and Court's Interim Order
Representing the ED, advocate Madhu N Rao argued for the plea's non-maintainability, highlighting that ₹800 crore has already been attached in the matter. He asserted the ED's authority to investigate across India, particularly as allegations of platform misuse by hundreds of players have surfaced. Justice M Nagaprasanna heard the submissions and directed the ED not to take further precipitative action against Rathore until the next hearing on January 14.
Impact on Co-founder
The legal challenge also touches upon the ongoing detention of co-founder Paavan Nanda, whose remand by a Bengaluru court is being contested on jurisdictional grounds. Rathore's plea, however, is specifically on the location of the probe, not the ED's power to investigate itself. The court adjourned the hearing, stating it would decide on January 14 without adjournment.