Paytm Share Price Falls Over 6% After ED Searches Company Offices


Shares of One 97 Communications Ltd., the operator of digital payments platform Paytm, declined after the Enforcement Directorate conducted searches at premises of several payment firms in Bengaluru.

Search operations under provisions of the Prevention of Money Laundering Act, 2002 were carried out on Sept. 2 at six premises in Bengaluru, in connection with Chinese loans app case, according to a press release by the investigative agency.

Several entities, operated by Chinese persons, are allegedly extorting and harassing people who had availed loans through mobile apps, according to ED. “The entities were doing their suspected/illegal business through various merchant IDs/accounts held with payment gateways/banks. The premises of Razorpay Pvt., Cashfree Payments, Paytm Payment Services Ltd. and entities controlled/operated by Chinese persons are covered in the search operation.”

“An amount of Rs 17 crore have been seized in merchant IDs and bank accounts of these Chinese-person controlled entities,” it said.


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