Paytm Under Scrutiny: ED Issues Rs 611 Crore Notice for FEMA Breach

The Enforcement Directorate issued a Rs 611 crore show cause notice to Paytm's parent company and subsidiaries for violating the Foreign Exchange Management Act. The notice addresses irregular foreign investments and unreported transactions. Paytm later clarified the violations predated their ownership of the involved subsidiaries.

The Enforcement Directorate (ED) announced Monday the issuance of a Rs 611 crore show cause notice to Paytm's parent and affiliated entities over FEMA violations.

A special director of the ED initiated this notice prior to adjudication proceedings, citing contraventions related to unreported foreign investments in OCL and improper FDI practices.

Paytm acknowledged receiving the notice, clarifying the alleged violations in Little Internet and Nearbuy preceded their 2017 acquisition of the companies.

(With inputs from agencies.)