New Delhi, March 1 Digital payments and financial services major Paytm on Saturday said it will seek resolution of alleged FEMA contraventions related to two acquired subsidiaries — Little Internet Private Limited (LIPL) and Nearbuy India Private Limited (NIPL).
The company clarified in a stock exchange filing that certain alleged contraventions are attributable to these subsidiaries for transactions during a period before they became part of Paytm.
The allegations stem from a show-cause notice (SCN) received by Paytm from the Directorate of Enforcement (ED) on February 28, 2025, related to alleged violations under the Foreign Exchange Management Act, 1999 (FEMA) for transactions between 2015 and 2019.
Paytm stated that it is seeking legal advice and evaluating appropriate remedies through available regulatory processes.
The company highlighted that a portion of the alleged contraventions pertains to a period prior to its investment in Little and Nearbuy, reinforcing that these transactions occurred before the companies became its subsidiaries.
The company also reaffirmed that the matter does not affect its operations. All services on the Paytm app remain fully operational and secure, with no impact on users or merchants.
Paytm reiterated its commitment to transparency, governance, and regulatory compliance.
The company said it is addressing the matter with a focus on resolving it in line with applicable laws, while continuing to serve its millions of users and merchant partners.
Last month, the Securities and Exchange Board of India (SEBI) passed a settlement order against Paytm Money after the company paid Rs 45.5 lakh to resolve allegations of regulatory violations. The settlement order allows the financial services firm to avoid further legal proceedings related to the issue.
The case originated from a show-cause notice issued by SEBI to Paytm Money on July 24, 2024, over non-compliance with the regulator’s technical glitch framework.
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