Delhi court asks local police to conclude investigation in three weeks

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Ashok Kumar Saxena had alleged that he invested $ 27,500 in One 97 Communications two decades ago. Paytm said Saxena’s allegations amounted to harassment and therefore the company is pursuing this matter as a criminal case. Paytm, in his submission to the police, confirmed that such a “letter of intent” had been signed, but it never resulted in a “final deal” as Saxena “lost interest”. A Delhi court reportedly gave police three weeks on Monday to complete the investigation into allegations raised by the former director of One 97 Communications against digital payments giant Paytm.

One 97 Communications is the parent company of Paytm.

Ashok Kumar Saxena, the former director of the company, claimed to have invested $ 27,500 in One97 Communication two decades ago and was promised a 55% stake in the company in return. However, the shares were never attributed to her, Saxena said in a legal document. “I order them to conclude the investigation as soon as possible,” said Metropolitan Magistrate Animesh Kumar. Police have submitted a situation report to the court but have not yet concluded the investigation, senior lawyer Anupam Lal Das, representing Saxena, told Reuters. after the hearing, the next hearing is set for September 13, 2021.

Business Insider has reached out to Paytm for comment.

Paytm had said that Saxena’s allegations amounted to harassment and, therefore, the company is pursuing this matter as a criminal case. The Noida-based company also mentioned this legal scuffle with Saxena in “criminal proceedings” in the preliminary documents for the $ 2.2 billion Initial Public Offering (IPO).

The digital payments giant in documentation submitted to Delhi police allegedly agreed that Saxena was one of the first directors at the company to serve between 2000 and 2004, according to a Reuters report dated August 12.

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

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

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