One97 Communications, the owner of the Paytm brand, clarified on Sunday that neither the company nor its Founder and CEO Vijay Shekhar Sharma is under investigation by the Enforcement Directorate for money laundering. The statement comes in response to the ED's visit to the company's premises and other fintech firms, including Razorpay, in September 2022 as part of money laundering investigations related to certain merchants using their platforms.
In a regulatory filing, Paytm stated, "Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering." The company emphasized its cooperation with authorities in the past when specific merchants or users on their platforms were subject to inquiries. Paytm reaffirmed its commitment to abiding by Indian laws and treating regulatory orders with utmost seriousness.
The recent controversy surrounding Paytm emerged after a Reserve Bank of India (RBI) order prohibited Paytm Payments Bank Ltd from accepting further deposits or conducting credit transactions, top-ups, or any related activities for customers after February 29. Paytm Payments Bank is an associate of One97 Communications, with 49% of the paid-up share capital held by OCL. Vijay Shekhar Sharma owns a 51% stake in the bank. The company remains committed to addressing regulatory concerns and ensuring compliance with the laws of the country.
(With Agency Inputs)