New Delhi, 3 March (IANS). The Enforcement Directorate (ED) on Monday issued a show cause notice to the RBI and others for violating some provisions of RBI and Foreign Exchange Management Act, 1999 (FEMA, 1999) of Rs 611 crore to Paytm’s promoter company One 97 Communications Limited (OCL), Vijay Shekhar Sharma and others.
In New Delhi, the Special Director has issued a cause notice to Paytm’s leading company One 97 Communications Limited (OCL), its Managing Director (MD) and other Paytm subsidiaries – Little Internet Private Limited (LIPL) and Nearbai India Private Limited (NIPL) FEMA, FEMA for violating the provisions of about Rs 611 crore.
The ED investigation has revealed that Paytm’s flagship company had invested in Singapore and did not even give necessary information to the RBI about the creation of a step-down subsidiary abroad.
According to the ED’s statement, OCL also received foreign direct investment from foreign investors without following the fair pricing guidelines set by the RBI.
In addition, OCL’s subsidiary Little Internet in India also received Foreign Investment (FDI) from foreign investors without following the pricing guidelines set by the RBI.
The ED said that Nirbai India Private Limited, another subsidiary of OCL, did not report FDI received by the company within the stipulated time limit by the RBI.
Earlier, Paytm had said that it would find a solution to alleged FEMA violations related to two acquired subsidiaries, Little Internet Private Limited (LIPL) and Nearbai India Private Limited (NIPL).
Paytm said that she is taking legal advice and evaluating appropriate measures through available regulatory procedures.
-IANS
ABS/ABM
