The ED has not filed an enforcement case information report in this regard, reported India Today. The ED has not filed an enforcement case information report in this regard, reported India Today. The ED has not filed an enforcement case information report in this regard, reported India Today. Hours after it was reported that a case had been initiated against the Paytm Payments Bank Ltd (PPBL) for violations of foreign exchange laws, Paytm on Wednesday issued a clarification, saying its banking arm does not undertake outward foreign remittance. In the statement, One 97 Communications Limited, the parent firm of Paytm, said its subsidiaries and PPBL have been receiving notices and requisitions for information, documents, and explanations from the authorities, including the Enforcement Directorate (ED).
The company said its associate firms have continued to provide such information, documents, and explanations to the authorities as is being required by them. "We would also like to clarify that our associate Paytm Payments Bank Limited does not undertake Outward Foreign Remittance," it said.
Earlier, it was reported that the central probe agency was investigating if platforms run by One 97 Communications were involved in violations of foreign exchange rules. Reuters, citing sources, reported that the fintech was being investigated under specific provisions of the Foreign Exchange Management Act (FEMA), which covers individual and corporate transfers overseas.
The ED has not filed an enforcement case information report in this regard, reported India Today. Currently, ED and the Reserve Bank of India (RBI) are the only organisations looking into the issue.
Initially, Paytm had denied charges that ED was probing the firm and its unit Paytm Payments Bank Ltd (PBBL) for violations of foreign exchange laws.
In a stock exchange filing, One97 Communications Ltd (OCL) said it denies reports of investigation or violation of Foreign Exchange rules by the Company or its associate PBBL. "To address recent misinformation, factual inaccuracies, and speculation, One 97 Communications Limited would like to set out the Company’s position and directly address rumors in the recent misleading media reports about the Company. This filing is done in the interest of transparency, and protecting our reputation, customers, shareholders, and stakeholders from being influenced by unwarranted and speculative stories. We will continue to post such clarifications, as required," said OCL.
OCL added: "The Company filed a specific clarification yesterday, categorically denying any investigation by the Enforcement Directorate on OCL, our associates and our management. We have since seen additional media reports making baseless speculations about investigations of the Company or its associate Paytm Payments Bank Limited (PPBL) for violation of foreign exchange rules. We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation."