Paytm receives fema violation notice from Ed over Rs 611 Crore transactions company responded

The Directorate of Enforcement (ED) has sent a notice to Paytm’s owner One97 Communications for alleged violation of the Foreign Exchange Management Act (FEMA) rules. The case is related to some investment transactions related to the company and its two subsidiaries – Little Internet and Nearbuy. Paytm clarified this, saying that this alleged violation is from the time when these two companies were not its subsidiary companies. The company said that the notice was received on 28 February 2025 and a total transaction of Rs 611 crore has been questioned. However, no economic impact has been mentioned in this notice.

PTI report (via NDTVAccording to), One97 Communications (OCL) said in the information given to BSE, “We have received a show -cose notice from ED on 28 February 2025, which mentions the alleged violation of FEMA rules between 2015 and 2019. Is.”

According to Paytm, alleged irregularities worth Rs 611 crore include OCL Rs 245 crore, LIPL Rs 345 crore and NIPL Rs 21 crore. Paytm reported that some alleged violations are associated with two companies that were acquired in 2017 and at that time they were not its subsidiaries.

One97 assured that the matter would not affect the services of customers and traders. In its statement, the company said, “We will keep all our services safe and completely operational.” At the same time, Paytm also stated that it is taking the necessary legal advice to resolve the matter under law and regulatory process and is taking appropriate steps.

Significantly, Nearbuy started as Groupon India, which was launched by Ankur Wariku in 2011. Later, in 2015, Wariku and his core management team bought Groupon India business and made it an independent unit. In 2017, Paytm acquired Nearbuy and Little Internet.