'Gambling in guise of gaming': ED attaches assets worth Rs 117.4 crore linked to Probo in money laundering case

Enforcement Directorate

The Enforcement Directorate (ED)'s Gurugram Zonal Office has attached Rs 117.41 crore worth of movable and immovable assets belonging to Probo Media Technologies and the family members of its directors, escalating its money-laundering probe into the opinion trading platform.

The attached properties include fixed deposits (FDs), investments in shares, demand drafts, and bank balances in the name of the company, as well as apartments and flats held by the family members of the company's directors.

The agency alleged that Probo provides a 'platform for online gambling in the guise of online gaming'. The company had shut down its platform in August after the government introduced an online gaming law that prohibits real-money games.

ED said it started investigation on the basis of multiple FIRs filed against Probo and its directors in Gurugram, Palwal (Haryana) and Agra (Uttar Pradesh) under the Bharatiya Nyaya Sanhita (BNS), 2023 and the Public Gambling Act, 1867.

Complainants had alleged that they were "cheated and dishonestly presented" a scheme of earning money through simple 'yes or no' questions while the scheme in reality promotes gambling in the guise of skill-based gaming.

ED's investigation found that Probo "cheated its users by falsely presenting itself as a skill-based gaming platform. In reality, it operated a gambling platform under this disguise, thereby defrauding users and making illicit gains," it said.

"The criminal activities relating to the scheduled offences by the accused company through its directors / promoters, led to the generation of ‘proceeds of crime’ to the tune of Rs 1,245.64 Crore," the agency said, adding that further investigation is underway.

In July, ED conducted search operations at four premises in Gurugram and Jind, linked to Probo and its promoters, Sachin Subhaschandra Gupta and Ashish Garg, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the company’s "illegal gambling and betting activities" across India.

During these searches, investments in fixed deposits and shares worth Rs 284.5 crore were frozen, the agency said.

At the time, ED stated that Probo lacked a mechanism to prevent minors from registering as users, did not carry out proper due diligence (KYC), induced new users through misleading advertisements while promoting opinion trading related to election results.

"Investigation also revealed that the company had received Rs 134.84 Crore against issue of Preference Shares from foreign entities based out of Mauritius, Cayman Island and others," it said.

Probo, however, had stated in July that it adheres to all applicable laws and regulations, and “maintains the highest standards of compliance,” with user safety and trust being its top priorities.

"We remain confident that our commitment to compliance and innovation will help us emerge stronger through this process. We have complete faith in India's robust regulatory framework and its vision for responsible tech innovation," a Probo spokesperson said in a statement at the time.

Last month, ED had also frozen assets worth over Rs 520 crore linked to real money gaming operators WinZO and Gameskraft. Of this, about Rs 505 crore was tied to WinZO and Rs 18.75 crore to Gameskraft and Nirdesa Networks (Pocket52).