Paytm says there is no connection to merchants in the case of the loan application
Following searches by the Directorate of Law Enforcement (ED) at locations related to Paytm payment services, the company said on Sunday that the merchants under surveillance are not Paytm entities and that the funds seized do not belong to society.
The ED on Saturday said it carried out searches in connection with an investigation into the case of the application of Chinese micro-loan in six premises in Bangaloreincluding those of Razorpay Pvt, Cashfree Payments and Paytm Payment Services.
“As part of ongoing investigations of a specific set of merchants, ED has sought information on those merchants to whom we provide payment processing solutions. It is hereby clarified that these merchants are independent entities and that ‘none of them is an entity of our group,’ Paytm said in a statement to BSE (formerly Bombay Stock Exchange).
He added that he would continue to cooperate fully with the authorities and that all actions of the directive were duly respected.
“It should be noted that the ED has asked us to freeze certain Merchant Identifier (MID) amounts of a specific set of Merchant Entities (as mentioned by the ED in its press release). Note that none of the funds ordered to be frozen belong to Paytm or any of our group companies,” he added.
The case concerns the alleged extortion and harassment of those who had taken out small loans through the mobile apps operated by people based in China.