The Karnataka High Court has directed online gaming startup WinZO to furnish comprehensive financial details, including disclosures related to its subsidiaries and associated entities in India and overseas, as part of an ongoing investigation linked to alleged financial irregularities.
The directive comes amid proceedings initiated after the Enforcement Directorate (ED) conducted search operations at multiple premises connected to the company last month. During the action, the ED froze assets worth approximately ₹505 crore and arrested WinZO’s two cofounders, intensifying scrutiny around the firm’s financial structure and transactions.
According to court filings, the High Court has asked WinZO to submit audited financial statements, ownership details, inter-company transactions, and operational data related to all group entities. The move signals the court’s intent to assess the broader corporate and financial framework of the gaming platform.
WinZO, however, has contested the enforcement action, arguing that the amount frozen by the ED is disproportionate to the alleged offence. The company has further urged the court to declare the search and seizure operation invalid, claiming procedural lapses during the investigation.
Legal experts note that the court’s demand for detailed disclosures could play a pivotal role in determining the proportionality and legality of the enforcement action, especially given the scale of assets frozen and the global footprint of the company’s operations.
The case is being closely watched by India’s startup and gaming ecosystem, as it may set important precedents around regulatory oversight, cross border financial disclosures, and enforcement actions against digital gaming platforms.
The matter is expected to come up for further hearing after WinZO submits the requested financial documents.
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