Paytm receives ED show-cause notice for violating FEMA rules in acquisition of two subsidiaries
Paytm announced on Saturday, March 1, 2025, that it has received a show-cause notice from the crime-fighting agency Enforcement Directorate (ED) for allegedly violating certain Foreign Exchange Management Act (FEMA) rules. The notice relates to violations related to the acquisition of two subsidiaries – Little Internet Pvt Ltd and Nearbuy India Pvt Ltd for the years 2015 to 2019, with respect to certain investment transactions in the deal.
One97 Communications, the operator of the leading fintech major, said in a regulatory filing to the stock exchanges that the alleged breach pertains to the period when the two companies were not its subsidiaries.
