Paytm clarifies no money laundering Investigation by Enforcement Directorate

In a recent regulatory filing, One97 Communications, the parent company of the Paytm brand, has categorically denied reports of any investigation by the Enforcement Directorate (ED) against the company, its associates or founder and chief executive Vijay Shekhar Sharma for money laundering.

"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," Paytm said in a regulatory filing.

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The company said it has cooperated with the agencies during any investigations by the authorities on any set of merchants or users in the past.

"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 filing said.
The clarification comes after Revenue Secretary Sanjay Malhotra on Saturday said the enforcement directorate "will probe Paytm Payments Bank if any fresh charges of fund siphoning are found."

The company is mired into controversy following a recent RBI order that barred Paytm Payments Bank Ltd to not take any further deposits or conduct credit transactions or carry out top-ups on any customers accounts, prepaid instruments, wallets, cards for paying road tolls after February 29.