Paytm said on Sunday said that neither the company nor Vijay Shekhar Sharma, the CEO of One97, is currently under investigation by the enforcement directorate for money laundering.
The Reserve Bank of India (RBI) had raised concerns about the creation of numerous accounts at the bank without proper identification, suspecting potential money laundering activities.
“Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding money laundering. In the past, certain merchants and users on our platforms have been subject to inquiries, and on those occasions, we have always cooperated with the authorities. During any such investigations by the authorities on any set of merchants and users in the past, we have cooperated with them on these investigations,” the company said in an exchange filing.
“We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and will continue to abide by Indian laws and take regulatory orders with the utmost seriousness,” it added.
Paytm Payments Bank Ltd (PPBL) has been instructed by the central bank to cease several of its operations, including accepting new deposits, engaging in credit transactions, and facilitating top-ups for customer accounts, prepaid instruments, wallets, and cards used for paying road tolls, after February 29.
Customers will retain access to their current deposits and can use the funds in their wallets for services until the end of February. If the Reserve Bank of India (RBI) maintains its position, the ability to top up Paytm wallets will be discontinued, and transactions through the platform will no longer be possible.
