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FEMA Violations on Paytm Receives Show Cause Notice
Allegations Against Paytm
India’s financial crime-fighting agency has issued a show cause notice to Paytm for alleged violations of the Foreign Exchange Management Act (FEMA). The case pertains to the acquisition of two subsidiaries, Little Internet Private Limited and Nearbuy India Private Limited, during the years 2015 to 2019.
Paytm’s Response
Paytm has clarified that the violations relate to a period when these companies were not yet its subsidiaries. The company has stated that the notice will not impact its services to consumers and merchants.
Previous Denials
In February 2024, Paytm had denied reports of being under investigation for foreign exchange violations. It called such claims misleading and baseless, reiterating that neither the company nor Paytm Payments Bank Limited was under any probe.