97 Communications, the parent company of disputed fin-tech platform Paytm, has rejected media reports, which said it is has been investigated by the Enforcement Directorate (ED).
One 97 Communications, which owns 49 per cent stake in Paytm Payments Bank, said in a regulatory filing “Neither the Company nor its founder and CEO are being investigated by the Enforcement Directorate regarding inter alia money laundering.”
The company said in a statement that it had cooperated with authorities in the past when certain Paytm merchants had enquired.
“In the past, certain merchants/users on our platforms have been subject to enquiries and on those occasions, we have always cooperated with the authorities. During any such investigations by the authorities on any set of merchants/users in the past, we have cooperated with them on these investigations,” the regulatory filing said.
The regulatory filing comes amidst multiple media reports stating that Paytm is under scrutiny by investigating agencies for possible violations related to customer KYC and the Prevention of Money Laundering Act.
The company categorically said,“ (One 97 Communications) 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.”
Paytm Payments Bank is considered an associate company of One 97 Communications, with 49 per cent of its stake held by the company and the remaining stake held by its founder Vijay Shekhar Sharma, as per an ET Report.
The Reserve Bank of India (RBI) recently directed Paytm Payments Bank to stop offering basic banking services from March 1. In response, Paytm has announced that it will shift its banking settlement services to other third-party lenders