Paytm IPO: Delhi court asks local police to conclude its investigation in three weeks

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Paytm IPO: Delhi court asks local police to conclude its investigation in three weeks
BCCL
  • Ashok Kumar Saxena had alleged that he invested $27,500 in One 97 Communications two decades ago.
  • Paytm has said that the claims made by Saxena amount to harassment and, therefore, the company is pursuing this as a criminal case.
  • Paytm in its submission to police confirmed that such a ‘letter of intent’ was signed, but it never materialised into a ‘definitive agreement’ as Saxena ‘lost interest’.
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A Delhi court on Monday has reportedly given police three weeks to conclude investigation on the allegations raised by former One 97 Communications director against digital payments giant Paytm.

One 97 Communications is the parent company of Paytm.

Ashok Kumar Saxena, the former director of the company, had alleged that he invested $27,500 in One97 Communication two decades ago and was promised 55% shareholdings in the company in return. However, the shares were never allotted to him, Saxena said in a legal document.

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“I am directing them to conclude the inquiry as soon as possible," Metropolitan Magistrate Animesh Kumar said. The police has submitted a status report to the court but is yet to conclude the investigation, senior lawyer Anupam Lal Das, representing Saxena, told Reuters after the hearing. The next hearing is scheduled for September 13, 2021.

Business Insider has reached out to Paytm seeking comments.

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Paytm had said that the claims made by Saxena amount to harassment and, therefore, the company is pursuing this as a criminal case. The Noida-based company has also mentioned this legal brawl with Saxena under “criminal proceedings” in the preliminary filings for the $2.2 billion initial public offering (IPO).

The digital payments giant in the documentation submitted to the Delhi Police, has reportedly agreed that Saxena was one of the first few directors in the company who served between 2000 and 2004, as per a Reuters report dated August 12.

Paytm also claimed that Saxena had extended funds to One 97 Communications and a letter of intent was signed. However, the talks never reached a formal agreement as Saxena gradually “lost interest” in the company.

A company source has denied that Saxena was the co-founder of One 97 Communications.

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