Payment services provider Paytm has said that the Enforcement Directorate’s (ED) search of the company’s premises on Wednesday was not linked to any fresh investigation. ED has sought information from Paytm regarding the investigation being conducted against some merchants. The ED on Wednesday searched some premises of PayU, the One 97 Communications and payment solutions firm that runs Paytm. These firms were also investigated earlier this month.
In this regard, a company spokesperson said that ED No new information was discovered in this search. The ED has sought information about certain merchants from various payment service providers. “We have provided the necessary information,” the spokesperson said. Earlier this month, six premises of Paytm and PayU were searched in Bengaluru. ED has Told It was said that he has raided the premises of some online payment gateways. These include Paytm, Razorpay and Cashfree.
Paytm had said in a regulatory filing, “ED has sought information about merchants to whom we provide payment processing solutions. We would like to clarify that these merchants are separate entities and none of them are entities of our group.” Is.” Paytm had said that the ED has not directed to block any merchant linked to its or its group’s entities. According to a report, the ED has seized funds worth about Rs 17 crore kept in some merchant accounts belonging to Chinese nationals. The ED conducted these raids under the Prevention of Money Laundering Act (PMLA).
China’s Alibaba Group has a stake in One97 Communication. ED recently served notices to crypto exchanges CoinDCX, WazirX and CoinSwitch Kuber. These exchanges will be investigated for money laundering and violation of Foreign Exchange Act. Apart from the ED, authorities related to the Foreign Exchange Management Act (FEMA) will also be a part of the investigation. A CoinSwitch spokesperson told Gadgets 360, “The crypto segment is an early-stage industry and has great potential. We have received queries from various government agencies.”