Former Gameskraft CFO accused of diverting Rs 270 cr into F&O trades

BENGALURU: Gameskraft Technologies accused its former group chief financial officer, Ramesh Prabhu, of diverting company funds into unauthorised futures and options trading, causing losses he estimated at more than Rs 250 crore. Following a fact-finding review, the company wrote off Rs 270.4 crore in its accounts for the 2024-25 financial year. The allegations form part of an FIR registered by Bengaluru police on September 9. "Because the case involves an inordinate amount, we are taking opinion on whether it can be transferred to CID for investigation," a senior officer told TOI.

The FIR cites multiple offences under the Bharatiya Nyaya Sanhita, including theft, criminal breach of trust, concealment of property, forgery, and falsification of accounts. It also notes that Prabhu signed off on company financials for several years despite manipulated entries. He has not reported to work since March 1 and has been untraceable since sending the email. When TOI reached out to the company, its spokesperson said, "Gameskraft is and will provide all support to the authorities investigating this matter. As the matter is under investigation by the authorities, we cannot comment any further on this topic."

The disclosures come at a difficult time for the sector. In January 2025, the Supreme Court stayed GST demands worth Rs 1.5 lakh crore against gaming firms, including a Rs 21,000 crore notice to Gameskraft, with final hearings pending. In August, the company said it would not contest the new Online Gaming Act, which bans real-money games. It has already shut down its rummy and poker platforms and announced it will focus on "future-ready" offerings in compliance with the law.