New Delhi, 1 March (IANS). Paytm, a leading company in digital payments and financial services sector, said on Saturday that two acquired subsidiary, Little Internet Private Limited (LIPL) and Nearbai India Private Limited (NIPL), will try to resolve cases of alleged FEMA allegations.
The company told the stock market that these alleged violations are associated with transactions made by these subsidiary companies before becoming part of Paytm. These cases have jumped more after the ‘Reasons show’ (SCN) received from the Enforcement Directorate (ED) on 28 February 2025 to Paytm. The ED has sent a notice for alleged violations under the Foreign Exchange Management Act, 1999 (FEMA) for transactions between 2015 and 2019.
Paytm said that she is taking legal advice and evaluating appropriate measures through available regulatory procedures.
The company highlighted that a part of the alleged violations belongs to the period before its investment in ‘Little’ and ‘Nearbai’, which confirms that these transactions took place before the two companies became its subsidiary.
The company also confirmed that the matter does not affect its operation. All services on the Paytm app are completely operational and safe, which have no effect on users or traders.
Paytm reiterated its commitment to transparency, governance and regulatory compliance.
The company said that it is addressing the matter focusing on resolving the matter according to the current laws. At the same time, millions of its users and merchant partners are continue to serve.
The Securities and Exchange Board of India (SEBI) passed a settlement order against the previous Paytm Money, when the company paid Rs 45.5 lakhs to resolve allegations of regulatory violations. The settlement order protects the financial services firm from further legal action related to the issue.
The case was related to the ’cause notice’ issued by SEBI on 24 July 2024 to Paytm Money by SEBI on not complying with the technical disturbance structure of the regulator.
-IANS
Aqua/ABM
