In a massive crackdown on illegal online gaming in Telangana, the Directorate General of GST Intelligence (DGGI), Hyderabad Zonal Unit, dismantled an organised syndicate valued at around Rs 13,000 crore. The authorities arrested Pankaj Kumar, the founder and director of Adsum Advisory Service Pvt Ltd, a firm that ironically specialised in fraud detection and digital KYC verification services.
Investigators have identified Kumar as a key figure in a complex network that operated illegal online gaming websites. The accused had the tactical support of associated fintech companies, including payment aggregators and third-party technology providers.
Accused Assisted Shell Companies to Connect With UPI Systems
The investigation revealed that Kumar misused his position as a director of a KYC verification company to facilitate the fraudulent onboarding of merchants and shell entities. By failing to develop proper risk profiling based on ownership and control structures, he allegedly assisted these shell entities to integrate with UPI systems.
These false verifications were reportedly conducted on behalf of RBI-regulated entities, such as banks and payment gateways. The act effectively compromised the integrity of the regulated financial ecosystem.
Probe Underway
Apart from the administrative failures, the DGGI has classified Kumar as a direct beneficiary of the illegitimate proceeds generated by this crime syndicate. This arrest is part of a larger, massive crackdown by the Hyderabad Zonal Unit against the online gaming sector. The fraudulent syndicate saw a gross valuation of approximately USD 23 billion, or Rs 2 lakh crore, in 2025.
As part of the ongoing operations, authorities have already frozen bank accounts containing nearly Rs 100 crore and are continuing to pursue other associated fintech companies and masterminds linked to the racket. Official sources, cited by ANI, confirmed that further investigations were in progress to uncover the full extent of the syndicate's reach.