Delhi: The ED has issued show cause notices to One97 Communications (OCL), the parent company of digital payment app Paytm, and two of its subsidiaries, for allegedly violating foreign exchange regulations.
OCL said the notices were issued for violation of provisions of the Foreign Exchange Management Act (FEMA). The ED has pointed out violations of Rs. 245 crore in OCL, Rs. 345 crore in its subsidiaries Little Internet and Rs. 20.9 crore in Nearby India.
OCL said the alleged violations occurred in some investment transactions of the companies. The company said that it will take necessary action in accordance with the rules and regulations after consulting legal experts.
OCL also stated that there were some lapses before Paytm acquired related companies. Little Internet and Nearby India were acquired by Paytm in 2017 and later merged.
