Government's nod awaited to start WhatsApp payment feature in India: Zuckerberg
New Delhi, July 27 : Facing intense scrutiny in India over the spread of misinformation and fake news on WhatsApp, its parent company Facebook has said it is waiting for a green signal from the government to roll out peer-to-peer payments feature for over 200 million users on the instant mobile messaging platform.
In an earnings call with analysts after reporting its Q2 2018 results, CEO Mark Zuckerberg said the company has been testing the payment feature on WhatsApp in India for some time.
"It gives people a really simply way to send money to each other and contribute to greater financial inclusion. The feedback and usage have been strong. All signs point to a lot of people wanting to use this when the government gives us the green light," Zuckerberg said.
Earlier this year, WhatsApp launched a beta version of its Payments feature in India for nearly one million users.
The move -- set to give a tough competition to market leader Paytm -- evoked criticism from digital payment services who sought fair play, claiming WhatsApp has custom-implemented Unified Payments Interface (UPI) system which is not secure and flouts norms laid out by the National Payments Corporation of India (NPCI) that has developed the UPI system.
Paytm founder Vijay Shekhar Sharma also demanded a level-playing field for all UPI-based apps.
Clearing the air on the issue of "lack of fair play", the NPCI in February said that the full-scale public launch of the feature will be permitted only after the Facebook-owned platform meets all the required norms.
"Currently, NPCI has given its consent to roll out WhatsApp BHIM UPI beta launch with limited user base of one million and low per transaction limit," said the corporation.
"Four banks will join the multi-bank BHIM UPI model in phases and full feature product shall be released after the beta test is successful," the NPCI added.
Beta testers in India found their WhatsApp interface displaying a large list of supported banks and they can see a payments feature appear in their WhatsApp Settings menu.
But there was no news from WhatsApp after that.
According to Zuckerberg who lost almost $17 billion within an hour after the company reported slow users' growth in Q2 2018, "we've broadened our focus to building this [Payments feature] for other countries so we can give more people this ability faster".
Hauled up this month by the Indian government on its failure to check the spread of fake and provocative content on its platform amid growing lynching episodes, the Facebook-owned platform on July 20 launched a test to limit message forwarding to five chats that will apply to its users in India.
At least 30 people have lost their lives by lynch mobs after rumours, including that of child lifting, triggered via messages on WhatsApp.
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ED arrests Sandeepa Virk, 'cosmetologist' for alleged money laundering
New Delhi, Aug 13 (PTI): The Enforcement Directorate said on Wednesday it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of alleged fraud and misrepresentation.
The agency said the purported links of the woman, Sandeepa Virk, with a Reliance Group executive, Angarai Natarajan Sethuraman (President, Corporate Affairs), are also under its scanner. Sethuraman, in a statement, denied any connection with Virk or any transactions related to her.
Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.
A special court sent her to the ED's custody till August 14, the agency said. The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.
She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.
According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.
The federal agency said in a statement that the woman was also "in touch with" Sethuraman, former director of erstwhile Reliance Capital Limited.
She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.
"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.
The ED alleged that public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.
The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.
The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.
Sethuraman, in a statement, dismissed the allegations as "baseless". He denied any connection with Virk or any transactions related to her.
Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products. However, the ED said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.
A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.
"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.
Another social media-hosted bio data of the woman said she is a certified cosmetologist.
The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.
The money-laundering case stems from an FIR lodged by the Punjab Police.
Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.
