Karnataka High Court Threatens ED with ₹1 Lakh Penalty in WinZO Bail Challenge

BENGALURU – The Karnataka High Court has issued a stern warning to the Enforcement Directorate (ED), stating it will impose a cost of ₹1 lakh if the agency’s appeal against the bail granted to WinZO co-founder Paavan Nanda is found to be "unnecessary" or "frivolous."

Presiding over the matter, Justice S. Rachaiah clarified that for the appeal to succeed, the ED must provide concrete evidence that the accused either violated established bail conditions or actively attempted to suppress material facts. The court remarked that in the absence of such justifications, the challenge would be viewed as a waste of judicial time.

The case originates from a money-laundering probe involving allegations of algorithmic manipulation and the use of bots within WinZO’s gaming operations, which the ED claims resulted in wrongful gains of ₹177 crore. While the ED alleges the diversion of funds to overseas subsidiaries, Nanda has maintained his innocence, citing full cooperation with the investigation. The High Court has adjourned the matter until April 23 for further consideration.

Discription: The Karnataka High Court has warned the Enforcement Directorate (ED) of a ₹1 lakh penalty if its appeal against the bail of WinZO co-founder Paavan Nanda is deemed frivolous. Justice S. Rachaiah emphasized that the agency must prove Nanda either violated bail conditions or suppressed facts to justify the challenge.

The ED alleges WinZO engaged in money laundering and algorithmic manipulation involving ₹177 crore. However, the court noted that without evidence of misconduct during the bail period, the appeal appears unnecessary. Nanda maintains his innocence and claims full investigative cooperation. The case is scheduled for further hearing on April 23.