Paytm Hit with Rs 611 Crore ED Notice for Alleged FEMA Violations

Paytm parent One97 Communications has been issued a show-cause notice by the Enforcement Directorate (ED) for suspected Foreign Exchange Management Act (FEMA) breaches valued at Rs 611 crore. The February 27, 2025, notice is with regard to the period 2015-2019 and involves transactions related to Paytm's acquisition of subsidiaries Little Internet and Nearbuy India. Paytm says some of the suspected contraventions took place prior to the companies being its subsidiaries. The firm is considering legal advice and assessing remedies, assuring that its services are completely on track. The move comes following recent regulatory issues with Paytm Payments Bank. The ED notice categorizes the suspected violations at Rs 345 crore for Little Internet, Rs 245 crore for OCL, and Rs 21 crore for Nearbuy India.
Source: Business Standard and The Economic Times