Paytm Denies Links With Merchants Under ED Scanner in Chinese Loan App Case

Paytm’s dad or mum entity One 97 Communication on Sunday denied any reference to the retailers which might be at present underneath the scanner of the Enforcement Directorate’s (ED) in its probe in reference to a Chinese mortgage app. In an announcement, the fintech firm stated that not one of the funds frozen by the central company belongs to it or any of its group corporations. The ED late final week, carried out search operations at premises of on-line cost entities together with Paytm, Razorpay, and Cashfree.

“As a part of ongoing investigations on a specific set of merchants, the ED has sought information regarding such merchants to whom we provide payment processing solutions. We wish to clarify that these merchants are independent entities, and none of them are our group entities” Paytm stated in an regulatory filing on Sunday.

The digital funds agency stated not one of the service provider IDs instructed to be frozen by the ED belonged to Paytm or any of its group entities.

“We are, and will continue to, fully cooperate with the authorities, and all the directive actions are being duly complied with,” it added.

The ED on Saturday stated it had performed raids at six premises of on-line cost gateways together with Paytm, Razorpay, and Cashfree in Bengaluru as a part of an investigation of Chinese-controlled corporations and people suspected of unlawful lending practices.

As per a report by PTI, the ED had seized Rs. 17 crore price of funds saved in sure service provider IDs and financial institution accounts that belonged to Chinese residents. The raids had been performed underneath provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Paytm’s dad or mum One97 Communications is backed by China’s Alibaba Group Holding and its affiliate Ant Group.