Paytm Payments Bank’s compliance issues
In a shocking development, the Reserve Bank of India (RBI) pulled up Paytm Payments Bank in February for non-compliance with certain regulations and supervisory concerns. The RBI found that it had persistent non-compliance and supervisory concerns, prompting it to ban accepting fresh deposits and carrying out credit transactions after February 29, 2024.
An external audit revealed problems with Paytm’s books, including concerns over know your customer (KYC) norms. Paytm Payments Bank had previously been penalised for non-compliance with KYC directions and guidelines for licensing of payment banks.
Paytm was required to stop onboarding new customers for its banking entity. The bank’s customers faced restrictions on adding funds to wallets, prepaid instruments, and FASTags.
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Bhavish Aggarwal’s online feuds, Ola Electric’s woes2024 was a historic year for Ola Electric, becoming the first electric vehicle (EV) company to go public in India. However, controversies followed the company’s outspoken founder, Bhavish Aggarwal. The chief executive and founder of the company was engaged in a public spat with comedian Kunal Kamra on social media platform X, where the two exchanged heated comments over Ola Electric’s products.
Kamra said in a post, “Ola Electric hasn’t disclosed any plan to issue refunds or put an end date to current customer complaints. We don’t even know if there is a plan.” To this, Aggarwal replied, “If you can’t help, then shut up and let us fix the real customer issues.”
This isn’t just an internet issue. Over 10,000 complaints piled up against Ola Electric scooters, forcing the Central Consumer Protection Authority (CCPA) to issue a notice to the company. The backlash over unresolved complaints and poor service has dented its brand image.
Crypto heist at WazirX
Cryptocurrency platform WazirX suffered the biggest cyberattack on an Indian exchange, with hackers stealing more than $230 million worth of investor holdings or nearly half of the platform’s estimated reserves. Blockchain experts indicated the possible involvement of the cybercriminal group Lazarus behind the attack. Lazarus, allegedly backed by the North Korean government, is known for having carried out the world’s largest crypto exchange attacks in the past where the attacked party was not able to recover the funds because the attackers did not engage in negotiations.
BookMyShow-Coldplay controversy
Live ticketing platform BookMyShow was at the centre of a controversy when tickets for Coldplay’s India concert sold out within minutes, only to pop up on resale websites at inflated prices. BookMyShow is the official ticketing partner for the band’s events in India. There was backlash online and offline, with many accusing BookMyShow of having ties with resellers, which the company denied.
Mumbai police also questioned BookMyShow CEO Ashish Hemrajani and the company filed a complaint against unidentified persons for selling fake tickets at inflated rates. Investigation revealed that tickets were being sold on WhatsApp, Instagram, and other social media platforms at prices as high as Rs 3 lakh.
Rahul Yadav’s legal trouble
The year 2024 brought no relief for Rahul Yadav, the founder of 4B Networks. Info Edge, the parent company of jobs listing portal Naukri, lodged a first information report (FIR) against Yadav earlier in December, and others earlier this month over accusations of fraudulent activities related to the misuse of 4B Networks’ funds.
In July 2023, Info Edge initiated arbitration proceedings against 4B Networks after the startup failed to provide crucial information regarding its operations and management for a forensic audit.
Mamaearth inventory row
Distributor body All India Consumer Products Distributors Federation (AICPDF) alleged that Mamaearth parent Honasa Consumer has a large amount of unsold inventory, causing a financial burden of Rs 300 crore for distributors. However, Honasa denied these allegations, labelling them as “misinformation”. In a filing with the stock exchanges, the company said the total inventory in the distribution value-chain stood at Rs 40.69 crore, against the quoted figure of Rs 300 crore.