Fintech major Paytm has expressed its intent to seek resolution of alleged contraventions of the Foreign Exchange Management Act, 1999 (FEMA) in relation to its investments in two acquired companies — Little Internet Pvt Limited (LIPL) and NearBuy India Pvt Ltd (NIPL).
The company has received a show cause notice from the Directorate of Enforcement (ED) regarding these transactions.
According to the company’s stock exchange filing, certain alleged contraventions are attributable to Little and Nearbuy for transactions that occurred before these companies became subsidiaries of Paytm. The alleged transactions are related to the period between 2015 and 2019.
Paytm acquired Nearbuy and Little in 2017, merged them, and took a majority stake in the combined entity.
The Noida-based company also clarified that it is seeking legal advice and will take appropriate steps to resolve the matter through available regulatory processes in accordance with applicable laws.
Paytm assured that its operations and app services remain unaffected and secure. The company reaffirmed its commitment to transparency, governance, and compliance.
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