Paytm has been served a show cause notice by the Directorate of Enforcement (ED) for alleged Foreign Exchange Management Act (FEMA) violations.
The fintech company said the notice was issued on Thursday and received by it on Friday.
It relates to ₹611.18 Crore worth of transactions between 2015 and 2019 related to acquisitions of two subsidiaries, Little Internet Private Limited and Nearbuy India Private Limited.
The Vijay Shekhar Sharma-led company said it is seeking legal advice and evaluating remedies to resolve the matter in accordance with applicable laws.
There is no immediate financial impact or penalty specified in the notice.
The latest notice adds to the troubles of the company that has seen its stock nosedive over regulatory woes in recent years.
Paytm was ordered by the Reserve Bank of India roughly two years to halt a majority of business operations of its neo-banking unit Paytm Payments Bank over allegations of flouting know-your-customer (KYC) norms.
Paytm shares last closed 1.59% lower at ₹714 on Friday ahead of the disclosure.
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