Hyderabad: Cyber Crime Police book Paytm, One97 Communications for `facilitating’ distribution of gambling apps

Hyderabad: Hyderabad Cyber Crime Police have booked Paytm and its parent company, One97 Communications, for allegedly facilitating the distribution of illegal gambling apps.

The FIR, filed under IT and state gaming laws, accuses the companies of promoting unauthorized APK downloads for apps like MPL Cards and MPL Rummy, raising serious concerns over regulatory violations and user safety.

Complaint alleges promotion of banned gambling apps

The FIR was registered on July 24 at the Cyber Crime Police Station following a complaint filed by an advocate. The complaint alleges that Paytm’s digital platform was used to circulate APK (Android Package Kit) files for gambling applications, which are not available on official platforms like the Google Play Store or Apple App Store.

It further claims that One97 Communications was actively involved in promoting similar unauthorized gambling activities as recently as June 28, 2025.

Legal action under IT and Gaming laws

Based on the complaint, police have invoked Section 66 read with Section 43 of the Information Technology Act, 2000 (amended 2008), which deals with unauthorized access and misuse of computer systems.

Additionally, Section 3A of the Telangana Gaming Act has been applied, targeting illegal online gaming operations. Authorities are currently analyzing digital evidence and backend data to ascertain the full scope of the alleged violations.

Cybersecurity risks raised by experts

Experts warn that the promotion of APK files through unofficial channels exposes users to serious cybersecurity threats, including data theft, spyware infiltration, and unauthorized access to personal information.

“Such files, when downloaded from unverified sources, bypass critical safety checks and can act as a backdoor for malicious software,” said a senior cybersecurity analyst. “Moreover, the gambling content itself is addictive and largely unregulated, posing risks especially to younger users.”

Regulatory evasion under scrutiny

The case has sparked outrage among digital safety advocates, who accuse Paytm and One97 Communications of exploiting their platform’s reach to push content that circumvents India’s strict app distribution norms.

The unauthorized promotion of gambling apps, without oversight or user safeguards, has raised concerns over how digital payment platforms may be misused to bypass the system and reach unsuspecting users.

Investigation ongoing

Cybercrime police officials confirmed that a detailed investigation is underway, and further action will be taken based on forensic analysis of app distribution logs, transaction data, and backend operations.

This incident is expected to reignite discussions around the regulation of fintech platforms, particularly their role in monitoring and controlling third-party content distributed through their networks, experts opined.