The Enforcement Directorate (ED) has issued a show-cause notice to One97 Communications Ltd (OCL), the parent company of Paytm, along with its Managing Director and subsidiaries, Little Internet Pvt Ltd and Nearbuy India Pvt Ltd, for alleged contraventions of the Foreign Exchange Management Act (FEMA) amounting to approximately ₹611 crore.

The ED's investigation revealed that OCL made foreign investments in Singapore without filing the necessary reports to the Reserve Bank of India (RBI) for the creation of an overseas step-down subsidiary. Additionally, OCL received foreign direct investment (FDI) from overseas investors without adhering to the RBI's pricing guidelines. The investigation also found that Little Internet Pvt Ltd received FDI without complying with RBI's pricing regulations, and Nearbuy India Pvt Ltd failed to report FDI transactions within the prescribed timeframe.