Ex-Gameskraft CFO Ramesh Prabhu's F&O Gamble Results in ₹250 Cr Losses

Gameskraft Technologies has filed an FIR against its former group chief financial officer (CFO), Ramesh Prabhu for siphoning roughly ₹231.4 crore from company accounts, Business Standard reported.

The complaint reportedly stated that Prabhu transferred the money into a bank account he alone controlled and used the money to fund high-risk futures and options trading. The firm says it incurred losses exceeding ₹250 crore due to the act.

The FIR was filed on 9 September at Marathahalli police station in Bengaluru, according to police and company filings.

Confession, Disappearance & Cover-Up

The case unfolded after Prabhu, a chartered accountant who joined Gameskraft in 2018, sent a voluntary confession email on 5 March 2025, admitting unauthorised diversion of funds over several years.

The company’s internal fact-finding review purportedly found that Prabhu had channelled transfers through an RBL Bank account in his sole control and had recorded the outflows as ‘investments’ in Gameskraft’s books.

To conceal the activity, investigators say he fabricated mutual fund statements and falsified accounting entries. Prabhu has been unreachable since 1 March, the complaint states.

Gameskraft’s FIR lists offences including theft, criminal breach of trust, forgery and falsification of accounts under provisions of the Bharatiya Nyaya Sanhita (BNS) and corresponding Indian Penal Code sections.

In its FY25 financial statements the company disclosed an exceptional write-off of ₹270.43 crore linked to the unauthorised transactions, and the board reported that unauthorised entries totalling about ₹231.39 crore occurred between FY20 and FY25.

Business Impact

The fraud compounds a difficult period for Gameskraft. The Bengaluru-based gaming firm reported revenue growth in FY25 but a 25% decline in net profit to ₹706 crore, citing higher GST outflows and the one-time accounting adjustment tied to the alleged misappropriation.

The troubles intensified after Parliament enacted the Promotion and Regulation of Online Gaming Act, 2025, effectively banning real-money gaming and forcing Gameskraft to suspend several core platforms, including RummyCulture, Gamezy, Pocket52 and Ludo Select.

Company Response & Investigation Status

Gameskraft lodged the police complaint after completing a forensic review and has asked law-enforcement agencies to investigate.

Company efforts to reach Prabhu have so far been unsuccessful, and the matter remains in the criminal-investigation phase. The FIR and the forensic findings will now guide police inquiries; prosecutors may pursue charges and seek recovery of misapplied funds depending on investigative outcomes.

Police investigators and Gameskraft’s auditors are expected to continue their probes; the company said it will cooperate with authorities. The pace of criminal proceedings and any subsequent regulatory or civil actions will determine how quickly Gameskraft can close the episode and stabilise finances and operations.

The episode has raised fresh questions about internal controls and corporate governance at startups and mid-sized firms, particularly in fast-moving sectors like online gaming where rapid growth can outpace control frameworks. Analysts say the case underscores the need for stronger treasury controls, independent audits and segregation of duties in finance functions.