Ashok Kumar Saxena has initiated public contempt against Paytm by inform SEBI, the primary market regulator to hold off the much-awaited Paytm IPO. Saxena, who has been the director of one 97 communications, which is the subsidiary head of Paytm claims to have spent $27,500 in the firm over two decades ago. According to Saxena, the business never transferred his 55 per cent shareholdings to him.
Paytm claims in legal filings that Ashok Kumar Saxena’s claim and fraud charges in a police report filed in New Delhi are malicious attempts to harass the company. The disagreement, however, is included in Paytm’s July IPO prospectus, which was filed for regulatory approval.
According to a previously unreported complaint, Mr Saxena has petitioned the Securities and Exchange Board of India (SEBI) to halt the IPO, claiming that investors will lose money if his assertion is proven true.
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The case has also made its way to a New Delhi court, where Saxena has asked the judge to order the local police to file a complaint on his behalf. The police were instructed to answer by the court, and the case will be heard on August 23. Paytm’s ascent has been remarkable, with its app becoming a household brand for digital payments in India.
According to the digital payments giant, Saxena did lend cash to the firm, but he “lost interest” over time. The business clarified that the document in question was only a “letter of Intent,” not a formal contract. In its legal statement to the police, Paytm also acknowledged this. After the agreement was signed, Saxena began distancing himself from the firm and ceased attending board meetings, according to Paytm’s legal declaration. As a result, the intent was never fully agreed upon.
Paytm also said in the court filing that it and Saxena had struck a private agreement and transferred the shares to an Indian company. Saxena stated that he had never received any shares and that there had been no miscommunication.
Read also: Paytm Money to enable payment mandates for IPO applications
