Hyderabad: Online gaming tax fraud investigation intensified as the Directorate General of GST Intelligence (DGGI) arrested Pankaj Kumar, founder and director of Addsum Advisory Service Private Limited.
Officials from the Hyderabad Zonal Unit took him into custody for his alleged role in a massive illegal gaming network. Investigators said his firm offered fraud detection, customer verification and digital KYC services.
DGGI uncovered a nationwide organised online gaming syndicate valued at nearly Rs 13,000 crore. The network allegedly operated through payment aggregators, gateways and third-party technology firms. Authorities found that entities under RBI regulation processed fraudulent KYC verifications for merchants and shell companies.
DGGI tightens online gaming tax fraud probe
Investigators alleged that Pankaj Kumar failed to conduct proper risk profiling despite heading a KYC verification firm. He allegedly helped onboard shell firms for UPI integration. Consequently, the network routed illicit funds generated through online gaming platforms.
Officials claimed he also benefited from the illegal proceeds. The Hyderabad unit has frozen bank accounts worth nearly Rs 100 crore. Authorities have also arrested key masterminds linked to the syndicate.
Industry estimates value India’s online gaming market at around $23 billion in 2025. However, officials said they will intensify action against entities that misuse fintech infrastructure for tax evasion. Further investigation continues.