Paytm denies ED probe against company, CEO 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”, the company said in an exchange filing.

“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. There are other stories in various media, including social media, which are spreading speculation and misinformation on the reasons for RBI action on Paytm Payments Bank,” the company said.

“The recent direction from RBI is a part of the ongoing supervisory engagement and compliance process. For this action, we refer our stakeholders to the official press release of RBI dated January 31, 2024 and not rely on unofficial sources,” the stock exchange filing read.

Paytm further said in the interest of transparency, and protecting its reputation, customers, shareholders and stakeholders from being influenced by unwarranted and speculative stories, the company has filing this discloser and is exploring all options to ensure that its stakeholders are protected from unwarranted and speculative stories.

Earlier on February 3, a Reuters report said that the Enforcement Directorate will probe Paytm Payments Bank if any fresh charges of fund siphoning are found quoting Revenue Secretary Sanjay Malhotra. On the same day, the banking regulator had cracked the whip on Paytm Payments Bank over irregularities in KYC (know your customer) norms, compliance issues and related party transactions.

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Published: 04 Feb 2024, 10:29 PM IST