Paytm: A threat to nation


Manish Kumar

Chinese incursion into Indian economy
After the Prime Minister Narendra Modi announced world’s biggest currency exchange exercise, a series of strange events have started unfolding. Who is taking decisions? Who is altering those decisions? What is right? And what is wrong? It seems that the government has stopped thinking. The situation has become so chaotic and disorganized that people who are standing in the queues outside banks and ATMs are not getting money, while hawala racketeers and frauds are getting caught with loads of new currency.

Every second day a new rule is announced, which is creating more confusion. Unfortunately, Modi government is neither concerned for the people nor the economy. In order to get benefitted from this situation some companies are all set to rob people. In partnership with the companies of the enemy nations they are trying to befool Indians. The nexus of the Reserve Bank of India officials, finance ministry bureaucrats is allowing them to capture the Indian market. Surprisingly opposition parties which are trying to open government’s eyes on this issue are getting no chance to debate in the parliament. Even they are also unaware of the Paytm’s conspiracy.


The Chauthi Duniya has gone to the root of the nexus which puts question mark on this company and its owner. If on the one hand government is promoting cashless system, banks are not getting sufficient supplies of bank notes on the other. People are unable to withdraw their own hard-earned money. Companies involved in cashless transactions are trapping people.

Especially Paytm is befooling people via advertisements on television and print media. In order to entrap the huge Indian market Paytm needs vast resources and technology. To serve this purpose it has partnered with an International giant. Before we disclose this huge nexus some facts need to be disclosed.
Recently, an FIR was lodged by Paytm with the CBI. Company reported a total scam of Rs 1.62 lakh in 26 different cases. FIR was against Paytm employees, which means it is full of fraudulent people. Hence it is crystal clear this company does not deserve people’s trust. This matter is now with CBI. Now the question arises how can government provide banking license to a company which is full of corrupt and fraudulent employees?

Every next day this company is in news due to wrong reasons. In one of such cases a shopkeeper took payment via Paytm and just one mistake took all his money. There’s no record of transaction. Poor shopkeeper is running to office of the company but all efforts in vein. Whereas the company says complaints can be made only by emails. One can imagine the plight of the poor man. He has no clue what to do next.

A man earns money and all his money went to somebody else’s account. What is he going to do now? This is not a single case of this sort. Recently in Surat three men became victim of online fraud. They also don’t have clue about their money. Company involved in these transactions also seems helpless. In another case Madhya Pradesh police registered case against Paytm and other e-wallet providers. There have been 300 cases of online frauds. Criminals are targeting people with moderate background especially small shopkeepers and poor people.

Unfortunately these victims are clueless about the remedial measures. There are on only four cyber police stations in the country which are flooded with online fraud complaints these days. Current law related to cyber crimes is insufficient to hook these crooks. That clearly means we have reached a point where nobody can guarantee the safety of public’s money. During normal condition government of India guarantees every single penny of a common man. What if we become cashless?

This question is important because current crisis will ignite serious of suicides in the country. Imagine a situation where a person loses all his hard earned money and finance company says it is unaware of the fraud. What option will be left with him? Modi government which has shut its eyes towards reality. Is it ready to guarantee people’s suicide? The fact is in this case government itself will become helpless as a Chinese company is behind. This Chinese company has been given a chance to span its wings in India by Paytm.

Alibaba is a Chinese company which has entered in Indian market through Paytm. Both the company partnered in 2015. In comparison to Alibaba, Paytm is a tiny company. As quoted by Chinese media in Paytm Alibaba owns 40% stakes. But media and Paytm officials were found saying this stake is merely 25%. Why are they misleading people? Quite possible that Paytm is shutting everybody’s mouth by pouring advertisements in tv channels and newspapers. The relation between both these companies is far beyond the financial relationship.

Alibaba is not just an investors but it is also leading Paytm’s India business. According to Reserve bank data in total digital payments of the country Paytm and Alibaba share stands up to 74%. These companies are targeting 200 cities and 50 crore people. If they succeed in achieving their goal India’s economy will be controlled by China. Astonishingly our prime minister is promoting these companies.

Paytm’s founder and Chief executive officer Vijay Shekhar Sharma is self proclaimed patriot. On the contrary he is creating threat for people’s hard earned money. Recently in a TV interview Vijay was found saying Alibaba is just an investor. With this statement he is mislead Indians. Alibaba has invested more than 500 million dollars in Paytm. Simultaneously it has send 20 technical support teams to India. These teams are looking after operations of Paytm. So why is Vijay trying to prove himself a patriot.

If that’s true why did he call Chinese team to India? Who provided visas to this team? Obviously behind the scenes government is providing helping hands. Government is well aware of the move then that’s why it is mum on the whole issue. Why Paytm has not adopted a technology which can be governed by India? India is known for its world class software engineers across the globe. So why aren’t Paytm seeking services of these world class engineers? Why it has preferred to sit in the lap of a Chinese company?

Not only Alibaba is monitoring Paytm’s operation but it is manufacturing different products for the company. Right from the server to hardware every product has been manufactured in China. On top of that Alibaba is also developing Paytm’s risk control capacity system which is the backbone of an online company. When it comes on to this system secrecy is maintained even with the employees. One can guess the level of irresponsibility from Paytm part that it decided to get this key system manufactured from a Chinese company.

Even its marketing operations are looked after by Alibaba’s ex-director, whole sale Bhushan Patil. One can imagine how Paytm is totally controlled and run by Alibaba. So how can it be an Indian company? Company’s owner Vijay is merely a puppet in the hands of Chinese company. This clearly indicates in case of any financial fraud there will be no accountability. People who are behind this so called digitalization move they will acquire become spectators’ in that condition as are unaware of the technology and the working of Paytm.

Many can think what kind of threat we have from a company. I would like to say firstly it is a Chinese company. Secondly our relations are neither good with China nor with Pakistan. Both these countries try to create hassles for India. Citing Indo-China border issue, Tibet conflict and matters related to terrorism no one can deny from future tussles between India and China.

Even in mobile technology China is manufacturing our hardware and software for which experts have warned earlier. Adding on to that Paytm’s entry into financial system of the country can cause havoc in future. It is capturing Indian market bit by bit. Technology giant is well aware of the fact that majority of population in India is illiterate. They are unfamiliar with the technology and hence are unable to use online payment services properly. Many areas of country are awaiting mobile networking. Knowing all the facts if a company is investing more than 50 crore dollars in a country like India that means its target is far beyond just earning profits. Has Indian government assessed the threats before allowing this company in Indian market.

The most fearsome angle of the agreement between Alibaba and Paytm is both the companies will connect their sellers and buyers to a common network. As per Alibaba’s senior technical expert Chinese consumer would be able to pay in India via QR code and vice a versa. This can cause violation of Fema. This act sets a limit for cross border transactions of money. With Paytm and Alibaba’s new system this limit will lose its significance. Before entering into any agreement with China we need to remember that it is an ambitious nation and prefers shortcuts for developments.

It has grudges with India so no company can work with an Indian counterpart before seeking permission from Chinese government. In this situation we need to keep a watch on these dubious companies which are conspiring to enter into Indian economy. We also need to assess whether China is trying to control India by interfering into its economy. That is probably the reason why a Chinese company has chosen Paytm to capture the Indian market. No doubt it is getting government’s full support in the process of proving itself a pure Indian company.
Very few people are familiar with the fact that Alibaba has also invested in Snapdeal which is a prominent online retailer. Its investment in Snapdeal amounts to 500 million dollars. Investment from Alibaba exceeds to other companies as well. It partnered with DHL and Dehlivery. It is a giant and India’s cashless payment market is still in nascent stage. At this state if any company gets hassle free access to Indian market that is no less than a threat.

As soon as we transact through Paytm all our information including financial details, picture, location and content falls into an international network which is a Chinese company. Indirectly every information is getting into China. No foreign company should get direct or indirect access of Indian payment market. This is the job of Reserve bank to keep people’s hard earned money safe.

Till the government itself own each and every technique related to payment system it should not allow any foreign player into this segment. Reserve Bank of India needs to work on these techniques and get them manufactured in India as to assure safety of the money transacted online. Government’s cashless campaign can only be successful when the backend and the operations are all managed by the domestic player. Allowing Alibaba in the country means it will strengthen its hold in Indian market. Will cripple Indian market brick by brick as there’s no Indian company to its competition.

With each passing day it will reach to every corner of the country via mobile networking system. And china will conquer us via digital war.

Rules Compromised For Paytm
Why government is showering its generosity over Paytm’s owner Vjiay Shekhar Sharma. PM Modi is advertising for him. This is highly shameful for a country if its PM is promoting a private company. Especially knowing that Paytm is linked to company which belongs to our enemy nation. Paytm is freely using prime minister photographs in its ads.

Neither it was punished nor the fine was imposed. Message is clear. Prime Minister is himself behind promotion of this company. Prime minister’s loyalty towards this company can be judged with the fact that on November 19, 2015 Reserve Bank approved 11 applications for opening a payment bank. These applicants included Aditya Birla Nuvo, Airtel m-commerce services, Cholamandalam Distribution Services limited, Department of Post, Fino Paytech imited, National Security Depositary limited, Reliance Industries, Dilip shantiLal Singhvi, Vijay Shekhar Sharma, Tech Mahindra and Vodafone m-paisa. Out of these 11, 9 were companies not an individual. Bank licenses are usually given to companies not individuals.

In case if Reserve Bank provides license to an individual his credibility and goodwill needs to be properly checked. Dilip Shantilal Singhvi is a renowned Industrialist. He is the owner of Sun pharmaceuticals and belongs to Gujarat. He is also a Padma Shree awardee. The second individual who received the banking license was Vijay Shekhar Sharma. He is the owner of Paytm. But he does not have a business history.

Neither has he established any milestone in the business world earlier. As per our information Vijay Shekhar has cordial relations with few officials of the finance ministry which includes a joint secretary level bureaucrat Rajesh Agrawal. Modi government is so fond of Vijay Shekhar Sharma that it compromised with the norms. Out of total 41 applications 11 received banking license.

Among these only Vijay was an individual as Shantilal surrendered his license. Nobody knows what was the reason behind shantilal’s move? If rumors are to be believed just to provide license to Vijay an additional name of an individual was included so as to avoid partiality and extra privilege charges. This puts a question mark on the credibility of government as well as the Reserve Bank.

Government should clarify on what grounds other applications were rejected. Were they less eligible then Vijay Shekhar Sharma? Until and unless government clarifies stand it can be considered there is a nexus between the government and Vijay Shekhar.


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