Paytm representatives appear before Hyderabad police in online gaming racket case

Two representatives of Paytm were on Wednesday questioned in connection with payments routed through digital gateway for an online gaming racket, busted here last week, police said.

"Yes two of m from Paytm appeared before Hyderab Police...we questioned m and asked for information pertaining to online gaming case as bulk of payment was through Paytm, a senior police official told PTI.

Four people, including a Chinese national, were arrested by Hyderab Police in New Delhi last week for allegedly cheating two people here by organising online gaming in violation of ban on any kind of betting activity in Telangana.

Paytm representatives were questioned because payment gateway h been used by participants in online game and information was needed on who sent money and where it went, official said.

"y gave some information and y are yet to furnish a lot of information...May be (in ) next few days we should be able to get it from m, official ded.

During probe it came to light that domain name servers of gaming websites are based out of China while data hosting services h been cloud-based in US and operated from China.

Police h arrested Yah Hao, a Chinese national (He of Operations for South East Asia of company operating gaming portal) and three of its Directors--Dheeraj Sarkar, Ankit Kapoor and Neeraj Tuli.

amount frozen by investigators in bank accounts (at Gurugram) so far is nearly Rs 30 crore, police h said.

total value of inward transactions in two accounts traced so far was nearly Rs 1,100 crore, majority of transactions took place this year, y h said.

According to police, entire technical operation was run by China-based directors and partners of se companies and payments were being routed through India based payment service providers and gateways and in this case it was Paytm.