Paytm says no links with traders in loan app case
Following searches conducted by Enforcement Directorate (ED) at locations linked to Paytm Payment Services, the company on Sunday said that the merchants under scrutiny are not Paytm entities and the seized funds do not belong to the company.
The ED on Saturday said it carried out searches as part of investigation in the Chinese micro-loan app case at six premises in Bengaluru, including those of Razorpay Pvt, Cashfree Payments and Paytm Payment Services.
“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. It is hereby clarified that these merchants are independent entities, and none of them are our group entities,” Paytm said in a communique to BSE (formerly Bombay Stock exchange).
It added that it will continue to fully cooperate with the authorities, and all the directive actions are being duly complied with.
“It may be noted that ED has instructed us to freeze certain amounts from the Merchant IDs (MIDs) of a specific set of merchant entities (as mentioned by the ED in their press release). It may be further noted that none of the funds which have been instructed to be frozen belong to Paytm or any of our group companies,” it added.
The case relates to alleged extortion and harassment of those who had taken small loans through the mobile apps operated by China-based individuals.