Paytm Denies any ED Investigation into Money Laundering

One97 Communications Ltd (OCL), the parent company of Paytm, denied any investigation by the Enforcement Directorate (ED) into the company, its associates, or its CEO, Vijay Shekhar Sharma. The company emphasized its compliance with Indian laws and past cooperation with authorities in user or merchant inquiries. It cautioned against speculations regarding the Reserve Bank of India’s (RBI) actions against Paytm Payments Bank, urging stakeholders to refer to official statements.

“In the past, certain merchants/users on our platforms have been subject to enquiries and on those occasions, we have always cooperated with the authorities,” Paytm parent One 97 Communications Ltd. said in a disclosure to stock exchanges. The company has also cooperated with state agencies on such probes, it added.

The company described the RBI’s actions as part of an ongoing supervisory and compliance process. RBI’s directive on halting deposits and transactions in Paytm accounts after February 29, 2024, except for certain credits, was also mentioned. Earlier, in March 2022, the RBI had instructed Paytm Payments Bank to halt new customer onboarding due to alleged KYC violations. Reports indicated concerns over KYC irregularities, including the lack of arm’s length with the promoter group, undisclosed payments to promoters, false compliance submissions, and overall compliance and transparency issues. These irregularities raised money laundering concerns and posed risks to customers, including depositors.