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Recently, the Delhi HC expected a response to a plea by Paytm in regard to phishing calls. The Court asked the telecom operators and sector regulators to respond to Paytm’s plea which related to a damage of Rs 100 crore for not being able to stop the phishing calls.
One97 Communication Pvt Ltd. which is the parent company of the financial services firm stated that the fraudsters have been spamming by claiming to represent Paytm through calls and SMSes. These spam calls and SMSes convince the customers to give away their sensitive data which further results in transfer of money directly from their accounts, without their knowledge or consent. A bench headed by Chief Justice DN Patel sent notices to Vodafone Idea Ltd., Bharti Airtel Ltd., Bharat Sanchar Nigam Ltd. and Reliance Jio Infocomm Ltd. for their response. Thus, Paytm argued that it is the responsibility of these telecom service providers, by law, to prevent these scam calls and deter fraudsters. It is also understood that these frauds occur due to the violation of the Telecommunication Commercial Communication Customer Preference Regulations, 2018. Paytm called for an immediate remedial action against such perpetrators and stated that these frauds have been causing significant damage to the brand value of Paytm. This has further resulted in customers losing faith in the brand which affects their business in a negative manner.
It is pertinent to note that Paytm has decided to make the Telecom Regulatory Authority of India a party in the case, stating that it has failed to take necessary actions against the violation of law by the telecom giants. This means that in addition to the service providers, the telecom regulator also has to file a reply in the Delhi High Court.
The matter is listed on June 24th, 2020, in the HC.
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