ED questions Paytm executives, gets documents on latest RBI action
New Delhi (PTI): The Enforcement Directorate has questioned senior Paytm executives and taken submission of documents from them following the recent RBI action of barring Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account, official sources said Thursday.
The central agency, according to the sources, is conducting preliminary examination of documents before it decides to launch a formal investigation into the RBI-flagged alleged irregularities at the fintech company under the Foreign Exchange Management Act (FEMA).
Some documents have been recently submitted by Paytm executives following which they were asked certain questions. Some more information has been sought, the sources said.
As of now, no irregularities have been detected and a case under FEMA will only be registered once any contravention under the said law is found, they added.
An investigation under the Prevention of Money Laundering Act (PMLA) involving Paytm is already going on for some time, they said.
One97 Communications, which provides financial services under the Paytm brand, and its banking arm Paytm Payments Bank have been receiving notices and requests for information with respect to customers of the respective entities, an exchange filing by the company said on Wednesday.
Paytm said its associate Paytm Payments Bank Limited does not undertake outward foreign remittances.
"One 97 Communications Limited (OCL), its subsidiaries and its associate, Paytm Payments Bank Limited, have over time been receiving notices and requisition for information, documents and explanations from the authorities, including Enforcement Directorate (ED), with respect to the customers that may have done business with the respective entities, and provided the required information, documents and explanations to the authorities," Paytm said in a regulatory filing.
Paytm said the company and its associate have continued to provide information, documents and explanations to the authorities as required by them.
Earlier this month, the Enforcement Directorate and the Financial Intelligence Unit asked the RBI to share its report on the recent action taken to bar Paytm Payments Bank Ltd from accepting deposits or top-ups in customer accounts, according to sources.
The central bank, on January 31, directed it to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29.
The ED has been probing Paytm and other online payment wallets as part of its money laundering investigation against Chinese-controlled mobile phone apps who allegedly laundered funds using merchant IDs created on these fintech platforms.
The Financial Intelligence Unit (FIU) has also sought the report from the RBI to analyse whether Paytm or PPBL followed the required procedures as a "reporting entity" under section 13 of the PMLA.
Under this section of the anti-money laundering law, a financial institution, bank or intermediary has to furnish details to the FIU about maintaining records of all transactions and documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients.
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Samson, Jurel hand RR comfortable 7-wicket win over LSG
Lucknow, Apr 27: Skipper Sanju Samson led from the front with an unbeaten 33-ball 71 while Dhruv Jurel made 52 not out off 34 balls to guide Rajasthan Royals to a seven-wicket win over Lucknow Super Giants, in their IPL match here on Saturday.
Chasing 197, Samson and Jurel shared unconquered 121 runs for the fourth wicket to chase down the target in 19 overs.
Earlier, skipper KL Rahul hit a 48-ball 76 while Deepak Hooda made 50 off 31 balls to guide Lucknow Super Giants to a decent 196 for 5 against Rajasthan Royals.
Sent into bat, LSG rode on 115-run third-wicket stand between Rahul and Hooda to put up a fighting total.
Sandeep Sharma was the most successful bowler for RR, returning with figures of 2/31.
Brief Scores:
Lucknow Super Giants: 196 for 5 in 20 overs (KL Rahul 76, Deepak Hooda 50; Sandeep Sharma 2/31).
Rajasthan Royals: 199 for 3 in 19 overs (Sanju Samson 71 not out, Dhruv Jurel 52 not out; Amit Mishra 1/20).
