The Directorate of Application (ED) issued an opinion to the owner of PAYTM ONE97 Ltd Communications (OCL) for alleged violations of the Act respecting exchanges (FEMA) linked to transactions of more than 611 crore. The case concerns the acquisition of two subsidiaries, Little Internet Private Limited (LIP) and Nearbuy India Private Limited (NIPL).
One97 Communications (OCL), which has the PAYTM brand, informed BSE that it had received a notice of violation of the Emergency FEMA on February 28 for its subsidiaries, Little Internet Private Limited and Nearbuy India Private Limited.
The OCL said it received the FEMA violation notice on February 28, targeting its subsidiaries and certain current and former administrators and leaders. “This is in touch with alleged offenses for the years 2015 to 2019,” said the file.
About Rs 344.99 Brood of the total of RS 611.17 Brove is linked to investment transactions involving the Lipl, an amount of Rs 245.20 Core concerns the OCL and the RS 20.97 crore relating to NIPL, according to a scholarship file.
One97 Communications said that the alleged violation concerns the period when the two companies were not its subsidiaries.
The company, which acquired Lipl and Nipl in 2017, stressed that it was addressed the case in accordance with legal and regulatory requirements. “To resolve the case in accordance with applicable regulatory laws and processes, the company requests necessary legal advice and assesses the appropriate appeals,” said the file.
“There is no impact on PAYTM services to consumers and merchants, and all services remain fully operational,” he added.
Development comes in the middle of the Paytm Payments regulatory examination, which denied last year any violation of exchange rules. On January 31, the Reserve Bank of India (RBI) ordered the Paytm Payments bank to interrupt most of its operations from March 1, 2024, citing “persistent non-conformity and material supervision concerns”.
