NEW DELHI, May 14: The Enforcement Directorate (ED) on Thursday carried out searches across several states in connection with an alleged foreign exchange violation case involving a Delhi-based company and its associated entities engaged in online gaming activities.
Information was available with The Chenab Times that the federal agency conducted raids at approximately 14 locations and on various individuals and companies in Delhi, Gujarat, Madhya Pradesh (specifically Indore), and Jammu and Kashmir (Srinagar). The action is part of an ongoing investigation against Zygarde Technologies Pvt. Ltd.
The searches were initiated under the provisions of the Foreign Exchange Management Act (FEMA), which governs the country’s foreign exchange transactions. Officials stated that the probe commenced following intelligence inputs suggesting the company had collected funds from individuals through payment aggregators for online gaming purposes.
According to ED officials, these collected funds were allegedly routed through multiple intermediary entities, including one named Happy Easygo. Subsequently, the funds were purportedly remitted abroad. This outward remittance was allegedly disguised as wallet recharges and airline-related transactions, constituting a contravention of FEMA regulations.
The online gaming sector in India has been subject to increased regulatory scrutiny. The Union government announced a ban on online money gaming in August 2025, signaling a move to curb unregulated financial transactions and potential misuse of gaming platforms.
The company, Zygarde Technologies Pvt. Ltd., could not be reached for comment regarding the Enforcement Directorate’s actions against its operations. The investigation is ongoing, with the ED seeking to ascertain the full extent of the alleged foreign exchange violations and the flow of funds.
The raids highlight the government’s intensified efforts to combat financial irregularities and ensure compliance with foreign exchange laws, particularly in emerging digital sectors like online gaming. The ED’s action aims to deter entities from circumventing financial regulations through complex transaction structures.
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The Chenab Times News Desk
