Paytm Mall probe reveals up to Rs 10 crore fraud
Paytm Mall has unearthed a fraud of up to Rs 10 crore following a probe into a large percentage of cashbacks earned by small merchants and de-listed hundreds of sellers from its platform apart from sacking many employees.
Regarding the feasibility of businesses providing freebies, Paytm’s chairman and chief executive Vijay Shekhar Sharma said the cashback model is sustainable.
“After Diwali, what my team saw was that there were some small sellers who were getting large percentage of the cashbacks and we as a team asked our auditors to do a deeper audit,” Sharma told reporters here.
The company, which reportedly engaged consultancy firm EY to conduct the audit, found out that some sellers were colluding with junior employees to earn cashbacks, he added.