In a significant development in the ongoing online gaming investigation, the Directorate General of GST Intelligence (DGGI), Hyderabad, has arrested Shri Pankaj Kumar, founder and director of Adsum Advisory Service Pvt Ltd. The firm provides fraud detection and customer verification, including digital KYC services.
During the investigation, authorities uncovered an organised syndicate worth Rs 13,000 crore allegedly operating illegal online gaming websites with the assistance of associated fintech companies, including payment aggregators, payment gateways and third-party technology service providers. Shri Pankaj Kumar is alleged to be one of the masterminds behind fraudulent KYC verification of merchants and shell entities on behalf of RBI-regulated entities such as payment gateways and Banking as Payment Aggregator (BAPA).
As director of a company responsible for the KYC verification process, Kumar allegedly failed to conduct proper risk profiling of customers based on ownership and control structure. He is accused of facilitating the onboarding of shell entities for UPI integration, enabling the flow of funds linked to illegal online gaming operations. Investigators also claim he was among the beneficiaries who received illegitimate proceeds generated by the syndicate.
According to estimates, the gross valuation of India's online gaming sector in 2025 is around USD 23 billion (approximately Rs 2 lakh crore). DGGI Hyderabad has launched a major crackdown on online gaming syndicates, taking action against associated fintech companies, freezing bank accounts worth Rs 100 crore, and arresting key masterminds.
Further investigation is underway.
