<ul data-eligibleForWebStory="true"><li>Paytm's parent company, One97 Communications, has filed a compounding application with the RBI to settle alleged violations of FEMA following a show cause notice from the Enforcement Directorate.</li><li>The compounding process involves admitting to violations, accepting responsibility, and paying a penalty to settle the matter without legal proceedings; RBI has the discretion to approve or reject such applications.</li><li>The ongoing case involves alleged violations related to Paytm's acquisition of two companies between 2015 and 2019, totaling INR 611.17 Cr in transactions.</li><li>Out of the total alleged contraventions, INR 245.2 Cr was attributed to One97 Communications, and the rest to its subsidiaries, LIPL and NIPL.</li><li>Paytm is also settling other legal cases, including SEBI violations related to ESOPs, technical glitch framework, non-compliance in tax invoices, and impending GST demand faced by its gaming arm.</li><li>The company reported a consolidated net loss of INR 544.6 Cr in Q4 FY25, with operational revenue declining by 19% compared to the same period in the previous fiscal year.</li></ul>

Paytm Approaches RBI To Settle Alleged FEMA Breach: Report

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