No ED Investigation On Paytm, Confirms Revenue Secretary

Revenue Secretary Sanjay Malhotra has said there that no law enforcement agencies have taken action against Paytm.

Revenue Secretary Sanjay Malhotra has said there that no law enforcement agencies have taken action against Paytm.

Following Paytm's denial of an Enforcement Directorate (ED) investigation against it, Revenue Secretary Sanjay Malhotra, in an interview with Moneycontrol, emphasised 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 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.

The company has guaranteed users of uninterrupted services, emphasizing the continuous operation of the Paytm app even beyond Feb 29. Paytm's leadership in merchant payments also continues, as its devices like Paytm QR, Soundbox and Card Machines continue to operate as always. In fact, the company's merchants have come out in support saying that they trust the company for payments.