SC Stays Enforcement of Substantial Tax Demand, Bars Coercive Recovery Against Fantasy Gaming Company [Read Order]

In a recent ruling, the Supreme Court granted interim protection by staying enforcement of a substantial tax demand against a fantasy gaming company and directed that no coercive recovery measures be taken against it. Taking note of pending proceedings on similar issues, the Court deferred further hearing in the matter until a related judgment is delivered.

The writ petition was filed by the petitioner, Fanmade11 Fantasy Sports Pvt Ltd. Alongside the writ petition, the petitioner filed two interlocutory applications seeking ex-parte ad-interim relief and another one seeking an ex parte stay.

The petitioner questioned the legality of the tax demand arising from its online fantasy sports operations and sought ex-parte ad-interim relief, arguing that immediate enforcement would cause irreparable harm to its business.

The petitioner was represented by a team, Lalitendra Gulan, Sneha Ghosh, Mohit Pugalia, Gayatri Srivastva, Tanuj, M. Sarada, with Rajeev Gulani, Advocate-on-Record (AOR).

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The matter was heard by the Chief Justice Surya Kant, along with Justice Joymalya Bagchi and Justice Vipul M. Pancholi. During the hearing, the judges were informed that similar issues are already under consideration in Directorate General of Goods and Services Tax Intelligence (HQS) & Ors. vs. Gameskraft Technologies Private Limited & Ors. SLP (C) Nos—19366–19369 of 2023, where a two-judge Bench had reserved judgment on 12 August 2025.

That case, triggered by a ₹21,000 crore GST notice against Bengaluru‑based Gameskraft, has since expanded into one of the most consequential legal battles for India’s digitaleconomy - consolidating over 70 petitions from online gaming platforms, casinos, horse racing entities, and lotteries.

Its core lies in the issue of whether online fantasy sports are “games of skill” or “gambling.”

The Supreme Court, in this fantasy gaming case, held that authorities cannot take forceful steps like recovery proceedings, attachment of property, or enforcement of the tax demand until the Court hears the matter again.

Applying the principle to the present case, the Bench ruled that the current matters be listed only after the pronouncement of judgment in those pending matters.

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