Paytm will resolve FEMA allegations linked to Little Internet and Nearbuy subsidiaries. Allegations stem from a show-cause notice (SCN) received by Paytm from the Directorate of Enforcement (ED) on February 28, 2025. The allegations relate to alleged violations under the Foreign Exchange Management Act, 1999 (FEMA) for transactions between 2015 and 2019. Last month, the Securities and Exchange Board of India (SEBI) passed a settlement order against Paytm Money after the company paid Rs 45.5 lakh to resolve allegations of regulatory violations. The settlement order allows the financial services firm to avoid further legal proceedings related to the issue. The company said it is addressing the matter with a focus on resolving it in line with applicable laws, while continuing to serve its millions of users and merchant partners. The matter does not affect its operations. All services on the Paytm app remain fully operational and secure, with no impact on users or merchants, the company said in a stock exchange filing. It reiterated its commitment to transparency, governance, and regulatory compliance.
