Paytm has clarified that it has not received any new notice from the Enforcement Directorate (ED) in relation to an ongoing investigation into a cryptocurrency scam. This clarification comes in response to emails sent by the stock exchanges seeking information about the alleged ED investigation.
The case in question dates back to September 2022 and, according to Paytm, is not connected to the company or its subsidiaries. The company's statement was made in a filing to the Bombay Stock Exchange (BSE), where it emphasized that the ED's probe is focused on third-party merchants and not on Paytm itself.
The investigation is reportedly linked to a large-scale cryptocurrency scam that allegedly involved more than Rs 2,200 crore collected from investors across 20 states. The funds were purportedly collected under the pretense of cryptocurrency mining investments and were then allegedly sent out of the country.
A portion of these funds was reportedly frozen by the ED during the transaction process. The news of the investigation had a significant impact on Paytm's stock, which dropped to Rs 773.05 per share during intra-day trading. However, the stock managed to recover slightly and was trading at Rs 814.4, down by nearly 4 per cent around 2 pm.
Despite the controversy, Paytm's parent company, One97 Communications Limited, reported a surge in operating revenue by 10 per cent quarter-on-quarter (QoQ) to Rs 1,828 crore in Q3 FY25. This increase was driven by its payments business and expanding financial services distribution portfolio.
The company also reported a PAT improvement of Rs 208 crore QoQ to Rs (208) crore, while its cash reserves increased by Rs 2,851 crore QoQ to Rs 12,850 crore. This is not the first time that a major company has been linked to a cryptocurrency scam.
In the past, several other companies have faced similar allegations and have had to deal with the fallout. However, it is important to note that these allegations are often based on the actions of third-party merchants or individuals, and not the companies themselves.
In the case of Paytm, the company has been quick to clarify its position and has emphasized that it is not under investigation. This proactive approach is crucial in maintaining investor confidence and ensuring that the company's operations are not adversely affected.
