Mukesh Ambani-backed Reliance Jio has shot back at Paytm for dragging telecom operators to court alleging that the payments company is trying to pass on the blame for its own lapses on others. The firm is trying to evade legal liability of financial frauds occurring through its app, The Economic Times reported. The development comes after Paytm's parent company One97 Communications had earlier moved the Delhi High Court claiming that telecom service providers including Vodafone Idea, Jio, Bharti Airtel, Mahanagar Telephone Nigam (MTNL) and Bharat Sanchar Nigam (BSNL) besides Telecom Regulatory Authority of India (TRAI) and the communications ministry, were not blocking those defrauding its customers via phishing activities over various mobile networks.
Vijay Shekhar Sharma-led Paytm even claimed damages worth Rs 100 crore from telcos over their failure that caused the company both "financial and reputational loss". The next hearing of the case is on June 24. In a counter affidavit, Jio said that even the telecom regulator is not empowered to itself crackdown on such fraudulent activities, the report added. The responsibility to check and prevent such frauds stays with the banks and wallet companies such as Paytm, Jio said while stating the RBI's mandate.
Earlier this month, Paytm had once again blamed telecom operators for not doing enough to prevent its customers from falling victim to phishing scams. Paytm's advocate in the matter Karun Nundy had recently tweeted that telecom operators are violating their obligations under Telecom Commercial Communications Customer Preferences Regulations (TCCCPR), 2018, which was notified by the telecom regulator TRAI to curb the problem of unsolicited commercial communications. Nundy said that the legal regime is clear as per TCCCPR 2018 regulation, which mandates that telcos bear the responsibility to prevent and punish phishing as they are ones who issue bulk SIM cards, deceptive headers and SMS content that enable fraudsters.