Paytm, India’s leading digital payments and financial services company, has said that alleged FEMA contraventions linked to two acquired subsidiaries — Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL) are largely related to transactions before the Company’s investment in these entities.
The company received a show cause notice (SCN) from the Directorate of Enforcement (ED) on February 28, 2025 regarding alleged non-compliances with the Foreign Exchange Management Act, 1999 (FEMA) between 2015 and 2019. These allegations are linked to the investments made by Paytm’s parent entity One97 Communications Limited (OCL) in LIPL and NIPL, along with certain Directors and Officers.
Paytm clarified that certain alleged contraventions are attributable to the acquired companies before they became part of Paytm. The company is seeking legal advice and evaluating appropriate remedies through the available regulatory processes to resolve the matter.
The company reassured its users, merchant partners, and stakeholders that there is no impact on day-to-day business operations. “All services on the Paytm app are fully operational and secure,” the company said in its filing.
Paytm added that it is focused on resolving the matter in line with regulatory requirements and continues to serve its millions of users and merchant partners without any disruption.
The development comes at a time when Paytm has been consistently enhancing its business operations and focusing on its core payments and financial services business, reflecting the company’s continued strength in India’s digital payments ecosystem.
Paytm, India’s leading digital payments and financial services company, has said that alleged FEMA contraventions linked to two acquired subsidiaries — Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL) are largely related to transactions before the Company’s investment in these entities. The company received a show cause notice (SCN) from the Directorate Business Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
