Supreme Court Rejects ED Appeal Against Razorpay in PMLA Case
Razorpay Receives Relief from Supreme Court
Razorpay, a leading payment gateway firm, has received significant relief from the Supreme Court, which has dismissed the Enforcement Directorate's (ED) appeal against the company. This move upholds the Karnataka High Court's order that quashed money-laundering proceedings initiated against Razorpay.
The Supreme Court's decision comes after the Karnataka High Court quashed the proceedings in March 2024, holding that there was no evidence of Razorpay's intent to launder money. The Enforcement Directorate had initiated proceedings under Sections 3, 4, and 70 of the Prevention of Money Laundering Act (PMLA), alleging that Razorpay processed transactions for a non-banking financial company (NBFC) connected to illegal loan apps.
By affirming the High Court's ruling, the Supreme Court effectively held that a payment gateway cannot be proceeded against under the Prevention of Money Laundering Act (PMLA) solely based on alleged negligence. This decision is significant as Razorpay has shortlisted four investment banks for key advisory roles as it prepares for a proposed initial public offering (IPO).
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
The dismissal of the Enforcement Directorate's appeal against Razorpay may have a positive impact on the company's IPO prospects.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
