The Ministry of Corporate Affairs (MCA) has issued a fresh notice to digital payments company seeking details about its operations and the proceedings against its co-founder Ashneer Grover, The Economic Times has reported.
The ministry is also inquiring about the findings in a status report filed by the Delhi Police’s Economic Offences Wing over alleged financial irregularities at the company.
The notice has been issued by the Registrar of Companies, an arm of the ministry, under Section 206 of the Companies Act. It pertains to an inquiry dating back to 2022, said the report by The Economic Times.
In 2022, the MCA had sought information about BharatPe’s internal governance, investment in mutual funds, and stock options provided to independent directors, including the chairman and former State Bank of India chief, Rajnish Kumar.
The fresh notice from MCA comes at a time when the government has increased scrutiny of fintech firms over compliance and internal governance.
BharatPe’s rival, Paytm, is also facing a major challenge after the Reserve Bank of India ordered its payments bank subsidiary to stop accepting fresh deposits in its accounts or offer credit services or facilitate fund transfers after February 29. According to reports, the Enforcement Directorate is likely to initiate a formal probe on issues related to money-laundering and KYC violations.
According to another report by The Economic Times, Vijay Shekhar Sharma, Founder of Paytm, met Finance Minister Nirmala Sitharaman and RBI officials to discuss the ongoing issues.
Edited by Swetha Kannan
