The Hyderabad Cyber Crime Police has filed a First Information Report (FIR) against Paytm and its parent company, One97 Communications, citing their alleged role in distributing unauthorised gambling applications through APK files outside official app stores. The complaint, lodged by a city-based advocate, accuses the fintech firm of violating provisions under the Information Technology Act and the Telangana Gaming Act by enabling apps such as MPL Cards and MPL Rummy.
Digital platforms under legal and ethical scrutiny
The FIR states that One97 actively promoted downloads of these applications as recently as June 28, 2025, despite the lack of regulatory approvals. Authorities allege that these APK files, which bypass Play Store and App Store protocols, were circulated using Paytm’s digital infrastructure.
This move has triggered serious questions about how fintech platforms govern third-party content and enforce compliance. The case invokes sections of the IT Act that penalise unauthorised access and misuse of computer networks, alongside state gaming laws that restrict online betting operations.
Data risks amplified by unverified APK distribution
Cybersecurity experts warn that APK-based installations—especially those not vetted by official platforms—can introduce significant risks to users. These include exposure to malware, spyware, and data theft. Because these apps do not undergo rigorous security screening, they can be manipulated to include harmful code or siphon user information discreetly.
The police are examining server logs, payment trails, and user access data to assess how widely these apps were downloaded and whether the companies exercised sufficient due diligence to prevent such misuse.
Industry debates platform accountability
This incident has revived the conversation around corporate responsibility in digital ecosystems. While app distribution may involve multiple parties, experts argue that platforms hosting or promoting these apps cannot turn a blind eye when it comes to user protection.
As investigations continue, the outcome could set an important precedent for how fintech platforms ensure regulatory compliance and prevent the proliferation of illegal or high-risk content.
