Paytm denies FEMA probe, terms media reports ‘misleading, baseless’

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Paytm parent One97 Communications Ltd (OCL) Monday rejected reports of investigation or violation of Foreign Exchange rules by the company or its associate Paytm Payments Bank Limited and termed the recent media reports as entirely misleading, baseless and malicious.

The company in an exchange filing said, “The Company filed a specific clarification yesterday, categorically denying any investigation by the Enforcement Directorate on OCL, our associates and our management. We have since seen additional media reports making baseless speculations about investigations of the Company or its associate Paytm Payments Bank Limited (PPBL) for violation of foreign exchange rules”.

“We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation. Such media reports are entirely misleading, baseless and malicious, which harm the interests of all our stakeholders,” the company said.

Paytm further said this stock exchange filing is done in the interest of transparency, and protecting our reputation, customers, shareholders, and stakeholders from being influenced by unwarranted and speculative stories. The company will continue to post such clarifications, as required.

Earlier on Sunday, Paytm categorically denying any investigation by the Enforcement Directorate on One97 Communications Ltd, associates or its founder and CEO Vijay Shekhar Sharma for anti-money laundering activities as reported in some media reports.

“Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering”, the company had said in an exchange filing adding that “the recent direction from RBI is a part of the ongoing supervisory engagement and compliance process. For this action, we refer our stakeholders to the official press release of RBI dated January 31, 2024 and do not rely on unofficial sources.”

Earlier on February 3, a Reuters report said that the Enforcement Directorate will probe Paytm Payments Bank if any fresh charges of fund siphoning are found quoting Revenue Secretary Sanjay Malhotra. On the same day, the banking regulator had cracked the whip on Paytm Payments Bank over irregularities in KYC (know your customer) norms, compliance issues and related party transactions.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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