FEMA violation - Paytm under investigation, CEO Vijay Shekhar Sharma meets Finance Minister Nirmala Sitharaman

Paytm an Indian multinational financial company that specializes in digital payments and financial services, has now found itself under the critical observation and examination of ED (Enforcement Directorate). In accordance to a Reuters report, the investigation is regarding the alleged foreign exchange violations under the Foreign Exchange Management Act (FEMA).

Paytm strictly denied the allegations. "We vehemently deny any speculations on alleged FEMA violations by One 97 Commmunications or its associate Paytm Payments Bank," the spokesperson stated.

Neither the company nor its founder and CEO are being investigated by ED regarding inter alia money laundering ", the company said in an exchange filing, and added further, "We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness. There are other stories in various media, including social media, which are spreading speculation and misinformation on the reasons for RBI Action on Paytm Payments Bank."

Paytm Founder and CEO Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman on Tuesday and had also met Reserve Bank of India (RBI) officials, days after the regulator imposed a ban on Paytm Payments Bank (PPBL).