No ED investigation on Paytm, confirms Revenue Secretary

Following Paytm’s denial of an Enforcement Directorate (ED) investigation against it, Revenue Secretary Sanjay Malhotra, in an interview with Moneycontrol, emphasized that no law enforcement agencies have taken action against the prominent fintech company. This clarification comes amid speculations and misleading media reports suggesting Paytm’s involvement in money laundering.

Sanjay during the interview said, “If there is any action to be taken, law enforcement agencies will take it. Right now there is nothing.” This statement contradicts reports of a possible Enforcement Directorate probe.
Paytm itself addressed the matter in an exchange filing, refuting any involvement in anti-money laundering activities. The company asserted, “We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness.”
The filing clarified that neither the company nor its founder and CEO are under investigation by the Enforcement Directorate for money laundering. It acknowledged past inquiries into certain merchants/users on their platforms and emphasized cooperation with authorities during such investigations.

During a conference call on February 1, Bhavesh Gupta, President and COO of Paytm, disclosed ongoing discussions with top banks for partnerships to transfer nodal accounts. He mentioned that three other banks are interested in accommodating the nodal accounts instructed.

“We maintain multiple nodal accounts for various businesses that Paytm and the group entities do with large commercial banks, not just Paytm Payment Bank. We have 3 more banks in which we have already API connects on nodal businesses. All the 3 banks are very interested to make sure that these nodal accounts, which have been instructed to be shut down in Paytm Payment Bank, could be moved to one of those 3 banks,” said Bhavesh.
Furthermore, the company has guaranteed users of uninterrupted services, emphasizing the continuous operation of the Paytm app even beyond Feb 29.