Karnataka High Court Grants Relief to Winzo Employees, Directs Salary Payments

The Karnataka High Court has directed that the salaries of employees of online gaming platform Winzo be paid despite the Enforcement Directorate freezing the bank accounts of its subsidiary, Zo, under the PMLA.

While holding that the legality of the account freeze must be challenged before the PMLA adjudicating authority, the Court emphasised that employees’ livelihoods cannot be paralysed in the meantime.

It ordered the ED to permit limited account operations solely for salary disbursement after verification.

The Court noted that the business was prima facie lawful and employees were on the rolls prior to ED action.

[Zo v. ED]