Paytm Denies ‘Speculative Reports’ On Violation Of Foreign Exchange Laws
After news emerged that digital payments firm Paytm is facing probe with India’s federal anti-fraud agency investigating violations of foreign exchange laws, the company has released a statement denying the allegations.
In response to recent media reports, One97 Communications Ltd (OCL), the parent company of fintech giant Paytm, has issued the statement vehemently denying any investigation or violation of Foreign Exchange rules by Paytm or its associate, Paytm Payments Bank Limited (PPBL).
More details into the alleged probe against the company come to fore right after India’s central bank RBI asked the platform”s banking unit to halt business.
Reuters has reported quoting two sources familiar with the development that Enforcement Directorate has sought data from the central bank. “They did not indicate what specific provisions of the Foreign Exchange Management Act, which covers both individual and corporate transfers overseas, were the subject of the investigation,” the Reuters report said.
The company”s official statement refutes the allegations, stating that neither OCL nor PPBL are the subject of any such investigation. The clarification aims to address misinformation, factual inaccuracies, and baseless speculation circulating in the media.
Highlighting their commitment to transparency and safeguarding stakeholders” interests, One97 Communications Ltd emphasizes the importance of setting the record straight to protect their reputation, customers, shareholders, and stakeholders from unwarranted rumours.
This comes on the heels of a previous clarification where the company categorically denied any investigation by the Enforcement Directorate on OCL, its associates, or management. Despite these assurances, recent media reports continue to propagate unfounded claims of investigations into the company”s operations.
Paytm full statement:
“One97 Communications Ltd (OCL) denies reports of investigation or violation of Foreign Exchange rules by the Company or its associate Paytm Payments Bank Limited
To address recent misinformation, factual inaccuracies, and speculation, One97 Communications Limited (OCL / Paytm / Company) would like to set out the Company”s position and directly address rumors in the recent misleading media reports about the Company. 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 filed a specific clarification yesterday, categorically denying any investigation by the Enforcement Directorate on OCL, our associates and our management. We have since seen additional media reports making baseless speculations about investigations of the Company or its associate Paytm Payments Bank Limited (PPBL) for violation of foreign exchange rules.
We would like to reiterate that the Company and its associate Paytm Payments Bank Limited are not the subject matter of any such investigation. Such media reports are entirely misleading, baseless and malicious, which harm the interests of all our stakeholders.”
