Paytm Receives Notice from India’s Financial Crime Agency Over Subsidiary Acquisitions
Paytm has received a notice from the Enforcement Directorate over alleged violations of the Foreign Exchange Management Act related to subsidiary acquisitions from 2015 to 2019. The company confirmed that this notice will not impact its services.
India’s mobile payment and financial services platform, Paytm, has been issued a show cause notice by the Enforcement Directorate (ED), the nation’s financial crime enforcement agency. This notice is in connection with potential breaches of the Foreign Exchange Management Act (FEMA) pertaining to the acquisition of two subsidiaries: Little Internet Private Limited and Nearbuy India Private Limited. The stated violations primarily occurred between 2015 and 2019, according to a company statement.
In summary, Paytm has received a show cause notice from India’s financial crime agency regarding alleged violations of FEMA connected to its past acquisitions. The company clarified that this development will not affect its ongoing services to consumers and merchants.
Original Source: www.usnews.com
