The major fintech company led by Vijay Shekhar Sharma from Paytm One97 Communications Ltd has been fined Rs 47.1 lakh by the Office of the Collector of Stamps, New Delhi.
The fine was imposed because the company failed to pay stamp duty on the allotment of capital shares in previous years.
The penalty is in accordance with Section 40(1)(b) of the Indian Stamp Act, 1899, which regulates payment of stamp duty on legal documents, including those relating to the issue of shares.
Details of default
The penalty relates to non-payment of stamp duty amounting to Rs 1,43,16,535 on allotment of 10,26,386 equity shares, each valued at Rs 10,000.
According to Paytm, the necessary applications for payment of stamp duty were submitted to the relevant authorities, but some of them were subject to delays. The company assured that these delays were only a few days and that all applications were processed in sequence.
“The Company had submitted applications for payment of stamp duty at the relevant time before the Office of the Collector of Stamps, New Delhi, though there were delays of a few days in filing some applications. Such applications were processed by the Office of the Collector of Stamps in sequence. We have taken all necessary steps to be more diligent in avoiding such instances in future,” the company said. informed company in an exchange presentation.
Paytm also said there is no impact on the company’s operations or other activities.
Current regulatory challenges
This fine adds to a series of regulatory challenges faced by Paytm and its subsidiaries. Earlier this year, Paytm Payments Bank Ltd (PPBL), a subsidiary of One97 Communications, was fined by the Reserve Bank of India (RBI) for not complying with Know Your Customer (KYC) norms.
The bank was banned from accepting new clients, prompting significant changes within the organization, including the departure of key executives.
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