Paytm, India’s popular online payment revolutionist, is in the news again for ownership row. A Delhi court has allotted police three weeks to conclude an investigation into claims stating that a former Paytm director initially invested a good amount of money but didn’t receive any share ownership.
Ashok Kumar Saxena, 71, is in a legal battle with the company, claiming that he had invested $27,500 two decades ago in Paytm parent company, One97 Communications, but has yet to receive his allotted stock till now. Previously this year, sellers have put allegations that Paytm is not adhering to the FDI rules.
The company said the claim amounted to harassment and cited it under “criminal proceedings” in the prospectus for its proposed $2.2 billion initial public offerings.
Saxena, who held the director position in Paytm from 200 to 2004, even wrote to the market regulator urging them to stop its upcoming IPO proceedings. As per the Corporate governance experts, the combat between both parties could lead to regulatory inquiries and prove a roadblock for a Paytm IPO approval. It is estimated that the company has a potential IPO value of up to 25 billion, backed by Chinese eCommerce leader Alibaba Group Holding Ltd.
A Delhi district court judge has asked the police to close the final investigation report within three weeks.
Animesh Kumar, Metropolitan Magistrate, said, "I am directing them to conclude the inquiry as soon as possible."
So far, the police have already submitted a status report to the court; however, they are yet to submit the final investigation report, said Anupam Lal Das, a senior lawyer representing Saxena in the court.
Both Delhi police officials and Paytm have refused to comment on this development.
The dispute came into the news after publishing a document, dated back in 2001, duly signed by Saxena and Vijay Shekhar Sharma, current Paytm CEO, stating that Saxena owns 55% of One97 Communications while Sharma is holding the remaining percentage of shares in the company.
Paytm had earlier replied to the police notice by denying Saxena’s claim and added that he(Saxena) was not a co-founder and the questionable document was “merely a letter of intent” which “didn’t materialize into any definitive agreement.”
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