Paytm parent One97 Communications has refuted media reports claiming that the company is being investigated by the enforcement directorate.
“Neither the company nor its founder and CEO is being investigated by the Enforcement Directorate regarding inter alia money laundering,” the company said in an exchange filing on Sunday.
The clarification comes after many news outlets reported on Saturday that the Enforcement Directorate will probe Paytm Payments Bank if any fresh charges of fund siphoning are found.
The shares of One97 Communications have tanked since the Reserve Bank of India (RBI) ordered the company’s payments bank unit to halt most of its operations. In its notification, RBI stated that a comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.
In Sunday’s filing, the company said that it has always cooperated with authorities on instances where merchants or users on its platforms were subject to enquiries.
“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 company said.
The company contends that RBI’s latest direction is a part of the ongoing supervisory engagement and compliance process. Here, One97 Communications is exploring all options to ensure that its stakeholders are protected from “unwarranted and speculative” stories.
