How to remove creation of file paths?
According to your comment:


  I don't want to create pages for the Files


The url file/%file is registered as menu item in file_entity_menu(). You can disable the page by implementing hook_menu_alter() in custom module.

Example

/**
 * Implements hook_menu_alter().
 */
function mymodule_menu_alter(&amp;$items) {
  // disable the file entity page
  $items['file/%file']['access callback'] = FALSE;
}


Another question you mentioned.


  Can I redirect to home page for file url's?


You can override the page callback and add the redirection in it.

Example

/**
 * Implements hook_menu_alter().
 */
function mymodule_menu_alter(&amp;$items) {
  // disable the file entity page
  $items['file/%file']['page callback'] = 'mymodule_file_callback';
}

function mymodule_file_callback($file) {
  drupal_goto('&lt;front&gt;');
}