The Enforcement Directorate’s money laundering investigation into alleged financial irregularities at online gaming company Gameskraft has gained fresh significance after former Chief Financial Officer Ramesh Prabhu reportedly stated that nearly ₹250 crore in fund transfers were carried out on the instructions of the company’s founders. The statements, reproduced in a Karnataka High Court order, have raised questions over fund movement, internal approvals and alleged accounting manipulation within the company.
According to details cited in the court order, Prabhu responded to an ED summons under Section 50 of the Prevention of Money Laundering Act through an email dated November 18, 2025. In that communication, he allegedly claimed that the transactions under scrutiny were not unilateral acts but were executed under directions from founders Vikas Taneja, Deepak Singh Ahlawat, Prithvi Raj Singh and Deepak Kumar Jha.
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Former CFO Points to Founder Instructions
The court-reproduced statement said the transfers were internally described as temporary investments that were expected to be returned to the company later. The ED is examining whether company funds were diverted and later laundered through financial instruments.
The allegation also challenges Gameskraft’s earlier position that the alleged diversion of funds was carried out solely by a senior finance executive acting independently. Investigators are now reviewing whether the transactions had wider internal knowledge or approval.
As per the statement, the fund movement dates back to 2019, when legal disputes involving another gaming platform reportedly triggered concerns among Gameskraft’s leadership about financial exposure. Prabhu is said to have claimed that funds were then moved out of the company and deployed in stock market derivatives.
Trading Accounts, Mutual Fund Records Under Scrutiny
The former CFO reportedly told investigators that the funds were routed through his trading accounts on platforms such as Zerodha. In some cases, accounts were allegedly opened in his wife’s name without her knowledge.
He further claimed that all funds invested in futures and options trading were ultimately lost and that he did not personally benefit from the transactions. Investigators are examining these claims alongside financial records and transaction trails.
A key issue under scrutiny is the alleged accounting treatment of the fund transfers. Prabhu reportedly stated that the transferred funds were reflected in company books as mutual fund investments. He also alleged that he was instructed to prepare fabricated mutual fund statements for audit purposes, a request he claims to have refused in later financial years.
ED Examines Approvals and Money Trail
In arrest-related submissions referenced by the court, the ED alleged that the transactions formed part of a structured scheme involving diversion and layering of funds under the guise of investment activity. The agency has also suggested that portions of the alleged proceeds of crime were routed through investment channels and later moved into entities linked to individuals connected with the company.
Prabhu reportedly stated that transactions from a designated bank account required dual authorisation involving both himself and a co-founder. He also claimed that alerts regarding transfers were sent through email and SMS to authorised signatories.
The Karnataka High Court has not ruled on the truthfulness of the allegations. It observed that the issue before it was whether the ED had sufficient material to justify arrests under PMLA provisions. In a separate ruling, the court ordered the release of the arrested Gameskraft founders, holding that statutory safeguards under the law were not adequately followed. The ED continues to examine financial records, transaction trails and related documents as part of the ongoing investigation.
