A comprehensive probe could reportedly be initiated against Paytm after ascertaining relevant details from the RBI. Source report claims the Enforcement Directorate is likely to formally investigate the issues flagged by the central bank.
Sources could not independently verify the report. The development comes after CEO Vijay Shekhar Sharma and finance minister Nirmala Sitharaman met where he apprised the minister of the clampdown.
He was reportedly told to deal directly with the regulator.
The company has maintained there are no ongoing ED probes into the company or Sharma. “We must clarify that reports suggesting an impending probe into Paytm or its associate Paytm Payments Bank by the Enforcement Directorate, based on an RBI report, are factually incorrect and without foundation,” it said.
The company also issued a denial in a stock exchange filing on February 4.
“Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering. 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,” it had said. “We would like to set the record straight and deny any involvement in anti-money laundering activities. We have always cooperated with the authorities. Also, we would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness.”
Sharma explained to the finance minister the company’s position with regard to the various issues flagged by the regulator in the short meeting. Sharma had also met RBI officials where he had sought an extension of the February 29 deadline and a roadmap to thresh out the problems listed by the central bank.
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