HYDERABAD: The Hyderabad Cyber Crime Police have registered a case against Paytm and its parent company, One97 Communications, for allegedly enabling the dissemination of illegal gambling applications through unauthorised APK files. The FIR, filed on July 24, accuses the fintech platform of violating provisions of the Information Technology Act and Telangana Gaming Act by promoting unregulated gambling apps such as MPL Cards and MPL Rummy.
The complaint, lodged by a city-based advocate, claims that Paytm’s digital infrastructure was used to circulate APK files not listed on the Google Play Store or Apple App Store. According to the FIR, these downloads were actively promoted by One97 Communications as recently as June 28, 2025, thereby facilitating unauthorised gaming activity without proper regulatory approvals.
FIR Alleges Breach of Tech and Gaming Laws
Following the complaint, police have invoked Section 66 read with Section 43 of the Information Technology Act, 2000 (amended 2008), which penalises unauthorised access to computer systems and misuse of digital networks. In addition, Section 3A of the Telangana Gaming Act was applied to address the promotion of unlawful online betting platforms.
Authorities are currently examining backend data logs, server access points, and distribution channels to determine the extent of the alleged violations. Cybercrime investigators also focus on tracking the source of APK file dissemination and associated user engagement metrics.
Experts Raise Alarm Over Cybersecurity Threats
Cybersecurity professionals have expressed concern over the ease with which such unauthorised apps are made accessible via APKs. Downloading APK files from unverified sources exposes users to potential risks, including data theft, spyware, and malware.
“These apps often lack the security scrutiny required by official platforms and can be manipulated to install malicious code,” a senior cybersecurity analyst noted. “Moreover, online gambling poses mental and financial health risks, especially for vulnerable users.”
The ongoing case has triggered a renewed debate on how digital platforms must exercise due diligence over third-party content. Critics argue that fintech companies cannot turn a blind eye when their platforms are misused to propagate illegal or high-risk content.
The Hyderabad Cyber Crime Police stated that further legal action will depend on the findings of digital forensic reports, including payment trails and user data access patterns.