 |
| Image By: Bhupinder Nayyar on Flickr |
Former director of Paytm's parent company, One 97 Communications, Ashok Kumar Saxena is now lobbying India's market regulator to put a hold on the digital payments giant's $2.2 billion IPO (IPO).
Saxena claims to be a co-founder of One 97 Communications and claims to have spent $27,500 in the company nearly two decades ago. According to Saxena, the corporation never transferred his 55 per cent shareholdings to him.
A one-page document signed by Saxena and Paytm founder and CEO Vijay Shekhar Sharma in 2001 lies at the heart of the debate. According to the paper, Saxena would receive a 55 per cent equity stake in Paytm's parent business, One 97 Communications. Sharma would own the remaining 45 per cent of the equity shares.
The company's previous director had contacted the market regulator, the Securities and Exchange Board of India (SEBI). Saxena has previously filed a police case in New Delhi against Paytm.
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 react by the court, and the case will be heard on August 23.
Reuters was the first to report on the news.
In a legal filing filed with the Delhi Police, Paytm alleged that Saxena's allegations were attempts to harass the company. As a result, the dispute was labelled as "criminal proceedings" in the company's draft red herring prospectus (DRHP) for its IPO.
In the documents, Paytm also acknowledged that Saxena was one of the company's first few directors, serving from 2000 to 2004. However, Saxena was not a co-founder of One 97 Communications, according to the business. Reuters had access to the document.
Paytm has been contacted by Business Insider for comment. If and when we receive a response, we will update the copy.
In the petition, the digital payments giant claims that Saxena did extend funds to the company, but that he "lost interest" over time. The corporation further clarified that the letter in question was only a "letter of Intent," not a formal contract. In its legal statement to the police, Paytm also highlighted this.
After the contract was signed, Saxena began distancing himself from the company and ceased attending board meetings, according to Paytm's legal declaration. As a result, the intent was never fully agreed upon.
Paytm also stated in the legal document that it and Saxena had reached 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.
"The shares and money are one thing," Saxena told Reuters, "but I also want to be recognised as a co-founder."
(Source: Business Insider)
0 Comments