One97 Communications, the parent company of fintech firm Paytm, stated on February 4 that it is not under any investigation by the Enforcement Directorate (ED). This statement comes after the Reserve Bank of India (RBI) imposed restrictions on the lending arm, Paytm Payments Banks, last week.
"Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering," the company stated in an exchange filing.
The company clarified that the recent directives from the RBI are a component of the continuous supervisory engagement and compliance procedure. They urged stakeholders to rely on RBI's official press release dated January 31, 2024, regarding the recent action on Paytm Payments Bank Ltd. (PPBL), cautioning against misinformation from various unofficial media sources, including social media.
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"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," the statement said.
Last week, Reuters reported that ED could investigate PPBL for fund diversion if new allegations arise, as per Revenue Secretary Sanjay Malhotra's statement.
"If there are any fresh charges of money laundering against Paytm by RBI, those will be investigated by the Directorate of Enforcement as per the law of the land,” Malhotra said.
The fintech firm continues to face heightened tensions since the last notification of RBI. The shares of the parent company have been in free fall, plummeting more than 40 per cent since the beginning of this month.
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