Paytm Crisis: Vijay Shekhar Sharma Faces Regulatory Heat, Urged to Resolve Issues with RBI

Paytm founder Vijay Shekhar Sharma is under scrutiny as the Finance Ministry directs him to address RBI concerns directly. Reports suggest a potential Enforcement Directorate probe. Paytm denies allegations and emphasizes compliance with Indian laws. Get insights into the developing situation.

Amid the Paytm crisis, founder Vijay Shekhar Sharma recently met Finance Minister Nirmala Sitharaman to present his stance on the Reserve Bank of India’s (RBI) actions. However, instead of intervention, Sharma was advised to handle the matter directly with the regulatory body.

There are indications that a comprehensive investigation might be launched into Paytm following a thorough review of information provided by the RBI. According to an ET report, the Enforcement Directorate is likely to formally probe issues highlighted by the central bank.

It’s worth noting that BT could not independently verify this report. The development follows a meeting between CEO Vijay Shekhar Sharma and Finance Minister Nirmala Sitharaman, during which Sharma briefed the minister about the regulatory clampdown. Despite this, he was instructed to directly engage with the regulator.

Paytm, in response to these developments, has maintained that there are no ongoing Enforcement Directorate investigations into the company or its founder. In a stock exchange filing on February 4, the company issued a denial, stating, “Neither the company nor its founder and CEO are being investigated by the Enforcement Directorate regarding, among other things, money laundering.”

The denial further emphasized their cooperation with authorities in the past when certain merchants or users on their platforms were subject to inquiries. Paytm asserted its commitment to abiding by Indian laws and treating regulatory orders with the utmost seriousness. The company expressed a strong denial of any involvement in anti-money laundering activities.

In his meeting with the finance minister, Sharma explained the company’s position regarding the issues raised by the regulator in a concise session. Earlier, he had also met with RBI officials, seeking an extension of the February 29 deadline and requesting a roadmap to address the concerns highlighted by the central bank. The unfolding situation has garnered attention and is expected to develop further as regulatory scrutiny on Paytm intensifies.