• Source:JND
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Paytm Share Price: Shares of Paytm-owned One97 Communications fell over 4 per cent on Monday after the Enforcement Directorate sent a notice to the fintech firm for allegedly violating certain FEMA norms in connection with certain investment transactions by the company and two of its subsidiaries.

The company's stock fell 4.39 per cent to Rs 683.55 on the National Stock Exchange. It fell 4.37 per cent to Rs 685 per share on the BSE.

The market was trading in the negative zone and the 30-share BSE Sensex fell 271.22 points or 0.37 per cent to 72,926.88. The NSE Nifty also fell 93.60 points or 0.42 per cent to 22,031.10.

Paytm said in a regulatory filing on Saturday that the company and two of its subsidiaries - Little Internet and Nearbuy - have received notices from the Enforcement Directorate for alleged violation of FEMA rules with certain investment transactions.

Paytm later clarified that the allegations relate to a time when the two companies were not its subsidiaries.

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"We hereby inform you that a show cause notice...has been received by the company on February 28, 2025...from the Directorate of Enforcement.

"This is in relation to alleged contraventions for the years 2015 to 2019 of certain provisions of the 'FEMA' by the company, in relation to its acquisition of two subsidiaries namely Little Internet Pvt Ltd (LIPL) and Nearbuy India Pvt Ltd (NIPL), erstwhile Groupon, along with certain directors and officers," the company said in a regulatory filing.

One97 Communications (OCL) said it received a FEMA (Foreign Exchange Management Act) violation notice from the ED on February 28, alleging violations amounting to over Rs 611 crore without mentioning the financial impact.

According to details shared by the company, the alleged transactions of OCL are over Rs 245 crore, LIPL about Rs 345 crore and NIPL about Rs 21 crore.

"The alleged contraventions relate to certain investment transactions relating to OCL, LIPL and NIPL," it explained.

"Certain alleged contraventions attributable to two acquired companies - Little Internet Pvt Ltd and NearBuy India Pvt Ltd - pertain to a period when these were not subsidiaries of the Company," the filing said.

Paytm said that the issue has been resolved by focusing on resolution in accordance with applicable laws and the services offered to Paytm customers and merchants are not impacted by the issue, and all services remain fully functional and secure as usual.

"To resolve the matter in accordance with applicable laws and regulatory processes, the Company is seeking necessary legal advice and evaluating appropriate remedies," the filing added.

In 2017, Paytm acquired both companies.

Groupon India was started in 2011 by Ankur Warikoo as its founding CEO. Warikoo and the core management team of Groupon India bought Groupon's India business in 2015 and made it an independent entity.

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(With Inputs From PTI)