Paytm parent One97 Communications Ltd (OCL) on Monday dismissed reports of an investigation or violation of Foreign Exchange rules by the company or its associate Paytm Payments Bank Limited and termed the recent media reports as completely 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 into OCL, our partners and our management. We have since seen additional media reports making baseless speculations about investigations by the Company or its partner 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 of any such investigation. Such media reports are completely misleading, baseless and malicious which harm the interests of all our stakeholders,” the company said.
Paytm further said that this stock market filing is done in the interest of transparency, and protects our reputation, customers, shareholders and stakeholders from being influenced by unwarranted and speculative stories. The company will continue to post such clarifications, as needed.
Earlier on Sunday, Paytm categorically denied any investigation by the Enforcement Directorate on One97 Communications Ltd, partners 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 under investigation by the Enforcement Directorate for inter alia money laundering,” the company said in an exchange filing adding that “RBI’s recent direction is part of the ongoing supervisory engagement and compliance process. . For this that action, we refer our stakeholders to the official RBI press release dated January 31, 2024 and do not rely on unofficial sources.”
Earlier on February 3, a Reuters report said that the Enforcement Directorate will investigate Paytm Payments Bank if fresh allegations of fund siphoning are found citing Revenue Secretary Sanjay Malhotra. On the same day, the banking regulator cracked the whip on Paytm Payments Bank due to irregularities in KYC (know your customer) norms, compliance issues and related transactions.
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Published: 05 Feb 2024, 22:29 IST