Paytm said it has received a notice from the ED for the alleged violation of certain FEMA rules by the company and its two subsidiaries. File
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The Enforcement Directorate (ED) has issued a show-cause notice to One97 Communication Limited (OCL), the parent company of Paytm, its managing director, and others, for alleged contraventions of the provisions of the Foreign Exchange Management Act (FEMA) involving ₹611 crore.
“We are working towards resolving the matter in accordance with applicable laws and regulatory processes. We remain committed to strengthening processes in adherence and upholding the highest standards of compliance and governance,” a Paytm spokesperson said.
The notice has been issued by the Special Director of Enforcement (Adjudication) to Paytm’s flagship company, and other Paytm subsidiary companies, including Little Internet Private Limited and Nearbuy India Private Limited.
“Investigation conducted by the ED reveals that Paytm’s flagship company OCL had made foreign investment in Singapore and did not file necessary reporting to the Reserve Bank of India (RBI) for creation of overseas step-down subsidiary. Further, OCL had also received Foreign Direct Investment (FDI) from overseas investors without following proper pricing guidelines stipulated by RBI,” the agency said on Monday.
OCL’s subsidiary company in India, Little Internet Private Limited, had also received FDI, allegedly without following the pricing guidelines stipulated by the RBI; and Nearbuy India did not report the FDI receipt within the timeframe prescribed by the RBI.
Published – March 03, 2025 01:41 pm IST