One97 Communications, the parent company of Paytm, has issued a statement on February 4, refuting any ongoing investigation by the Enforcement Directorate (ED) or its related entities for alleged anti-money laundering activities.
The clarification follows recent reports suggesting that the ED might consider initiating an investigation into Paytm Payments Bank, the banking arm of Paytm, if accusations related to money laundering come to light.
In a regulatory filing, the fintech giant stated, “The company categorically denies any investigation by the Enforcement Directorate on OCL (One97 Communications Ltd), our associates, and/or its Founder and CEO for anti-money laundering activities.”
This development comes after Reuters, in conversation with Revenue Secretary Sanjay Malhotra, reported the possibility of the ED probing Paytm Payments Bank in the event of new charges related to fund siphoning.
Malhotra clarified, “If there are any fresh charges of money laundering against Paytm by RBI, those will be investigated by the Directorate of Enforcement as per the law of the land.”