Zomato To Get Show Cause Notice From Maharashtra Cyber Cell

SUMMARY

The law enforcement officials are also said to be probing if the move to not mention buyer’s name on ticket violates “ticketing regulations or poses security risks”

The cyber cell wants to seek an explanation as to why the tickets were being sold without identifying the buyers

Last year, tickets for Diljit Dosanjh’s “Dil-luminati Tour – India”, for which Zomato was the exclusive ticketing partner, were being sold on reselling platforms at inflated prices

Trouble appears to be brewing for Zomato. The Maharashtra Cyber Cell is reportedly in the process of sending a show cause notice to the foodtech major’s ticketing platform, District, for selling tickets for singer Honey Singh’s concert without specifying buyer’s name.

An official told NDTV that the concert tickets were being sold without the buyer’s name on the ticket, adding that the cyber cell is in the process of sending a notice to the company. As per the report, the cyber cell wants to seek an explanation as to why the tickets were being sold without identifying the buyers.

The law enforcement officials are also said to be probing if the move to not mention buyer’s name on ticket violates “ticketing regulations or poses security risks”.

Called the ‘Millionaire India Tour’, the concert marks the return of the singer to the public stage after many years. The event is slated to take place between February and March 2025, and the tickets are available on Zomato and Insider.in.

Responding to this, Zomato’s spokesperson said, “This is not true. We have not received any notice yet. As and when we receive it, we will work with the authorities to demonstrate that our practices comply with applicable laws. We have always adhered to the laws of the land and will continue to do so. Further, every M-ticket issued through the District app for music events or other experiences, including the Honey Singh concert, has consistently included the buyer’s name.”

This is not the first time that Zomato has landed in a controversy with regards to its ticketing platform. Last year, tickets for Diljit Dosanjh’s “Dil-luminati Tour – India”, for which Zomato was the exclusive ticketing partner, were being sold on reselling platforms at inflated prices.

The development draws parallels with a recent case that took place late last year. When tickets for the Coldplay concert in India went live in September last year, over 13 Mn fans logged into BookMyShow to buy tickets. However, the ticketing platform’s website crashed shortly after, with tickets selling out within minutes.

Thereafter, reports surfaced online that the tickets of the event were being re-sold online for exorbitant prices. Amid allegations of black marketing, the Mumbai Police’s Economic Offences Wing (EOW) issued summons to Ashish Hemrajani, CEO of Big Tree Entertainment (the parent entity of BookMyShow) and the company’s technical head to appear for questioning.

While Hemrajani skipped the summons, BookMyShow’s chief operating officer (COO) Anil Makhija reportedly made an appearance before the police.

The latest trouble comes at a time when Zomato has aggressively scaled up its live events and ticketing play. The foodtech giant last year acquired Paytm’s entertainment ticketing business for INR 2,048 Cr in an all-cash deal.

Thereafter, the company officially launched the ‘District’ app in November 2024 to enable users to discover and reserve tables at restaurants while also booking tickets for movies, sports, live performances, among other events. By January 20, the platform had crossed 6.5 Mn downloads.

At the heart of all this is the homegrown live events and ticketing market, which is projected to become an INR 14,700 Cr opportunity by 2026.

(The story has been updated to incorporate Zomato’s comments on the development)