Indian Police Investigate Paytm for Promoting Illegal Gambling Apps
Hyderabad’s Cyber Crime Police have registered an FIR against One97 Communications, the parent company of fintech platform Paytm, for allegedly facilitating the distribution of illegal gambling operators through APK files.
Grounds for the Case
Legal Violations
The case was filed on July 24, 2025, following a complaint by a local attorney. The charges cite violations of the following regulations:
- Sections 66 and 43 of India’s Information Technology Act;
- Section 3A of the Telangana Gaming Act.
According to the FIR, Paytm and One97 Communications promoted gambling apps MPL Cards and MPL Rummy through APK files, bypassing official distribution platforms like Google Play and the App Store.
Promotion Through Unofficial Channels
The complaint alleges that these apps have been distributed since at least June 2025. Paytm’s digital infrastructure was allegedly used to share these files directly with users, outside regulatory oversight. Full details are available here: read more.
Current Developments
Police Actions
Investigators are currently reviewing:
- Server and access point logs,
- Transaction records,
- File metadata,
- APK distribution mechanisms.
The findings from the digital forensic analysis will determine potential legal actions. The company has not yet issued an official statement.
Expert Concerns
Cybersecurity experts have raised alarms over the risks associated with sideloading APK files:
- Lack of security screening;
- Potential data leaks;
- Risk of embedded malware;
- Financial and psychological harm to users.
Experts argue that fintech platforms must be held accountable for how their infrastructure is used. Neglecting such incidents could lead to the spread of harmful or unauthorized content.
Public Opinion and Implications
Trust in Fintech Under Scrutiny
The issue has sparked public debate not only around legality but also the ethics of major digital platforms. The accusations against Paytm raise concerns over the need for stricter content moderation and responsibility for third-party integrations.
Possible Measures
| Stage | Description |
|---|---|
| Server Log Analysis | Tracking how APK files were distributed |
| Payment Review | Identifying transactions and involved users |
| Financial Audit | Assessing the scale of illicit gambling activity |
Conclusion
The investigation into Paytm highlights how vulnerabilities in digital ecosystems can be exploited to bypass legal frameworks.
It raises a critical question: who bears responsibility for activities on a platform—the users or the platform owner?
As the inquiry continues, authorities emphasize the need for legal oversight and transparency in digital financial operations.