ED Cracks Down on Online Gaming-linked Forex Violations

The Enforcement Directorate conducted searches in multiple states targeting a Delhi-based company for alleged foreign exchange violations linked to online gaming. Raids were carried out across locations, including Delhi and Gujarat, involving 14 people and entities. Funds were reportedly misrouted under the guise of legitimate transactions.

The Enforcement Directorate (ED) on Thursday launched a series of searches across multiple states, targeting a Delhi-based company amid allegations of foreign exchange violations linked to online gaming, according to officials.

Locations involving approximately 14 people and affiliated companies were raided in Delhi, Gujarat, Madhya Pradesh (Indore), and Jammu and Kashmir (Srinagar) in connection with the case against Zygarde Technologies Pvt. Ltd. This action was executed under provisions of the Foreign Exchange Management Act (FEMA), ED sources stated.

The investigation was sparked by tips that Zygarde Technologies reportedly collected funds from individuals via payment aggregators for online gaming. These funds were then allegedly redirected through various channels, including Happy Easygo, and sent abroad disguised as legitimate transaction sources, violating FEMA regulations. The government banned online money gaming in India in August 2025.