Paytm in FEMA Soup: ED Issues Notice for Massive Rs 611 Crore Contravention

The Enforcement Directorate has issued a notice to Paytm's parent company, managing director, and subsidiaries for violations of the Foreign Exchange Management Act involving Rs 611 crore. The company, facing issues over foreign investment transactions, is working to address the concerns in alignment with regulatory standards.

The Enforcement Directorate (ED) has issued a notice to Paytm's parent company, managing director, and affiliated entities for allegedly violating the Foreign Exchange Management Act (FEMA) involving transactions worth Rs 611 crore.

The federal agency's notice accuses One 97 Communication Limited (OCL) and subsidiaries Little Internet Pvt Ltd and Nearbuy India Pvt Ltd of failing to adhere to required regulations in foreign investments and direct investments from overseas.

Investigations allege OCL did not report investments in overseas subsidiaries, receiving FDI without following Reserve Bank of India guidelines, leading to a plunge in Paytm's shares.