Paytm clarifies it is not facing ED probe; calls media reports 'speculative'

One97 Communications, the parent company of fintech firm Paytm, refuted reports that the company is facing a probe by the Enforcement Directorate (ED).

In a statement, the company said it "categorically deny any investigation by the Enforcement Directorate on OCL, our associates and/or its Founder & CEO for anti-money laundering activities." "Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering,” the company added.

One97 Communications stated that it is coming out with this statement to address "misinformation, factual inaccuracies and speculation."

"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," the company said.

The company said in the past, certain merchants/users on its platforms have been subject to enquiries and on those occasions, the company cooperated with the authorities.

"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 statement from the company read.

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 observed and added that "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."