No FEMA violation found by ED in Paytm Payments Bank case: Report

In the case of Paytm Payments Bank Limited (PPBL), the Enforcement Directorate (ED) has not found any violation under the Foreign Exchange Management Act (FEMA), The Hindu has reported quoting people familiar with the development. As per the sources, there is no PMLA scheduled offence in the case of PPBL, the banking arm of Noida-based fintech major Paytm, and, therefore, a money laundering investigation cannot be done. “If no crime is made out, there is no generation of ‘proceeds of crime’ and so, PMLA does not apply. The ED, therefore, looked into the financial transactions to determine if there was any violation under the FEMA provisions,” a government official told the English daily.