New Delhi: The Delhi court on Monday has given a three-week police to conclude an investigation of the claim from the former Paytm director who said he jointly established a digital payment platform but did not receive shares.
Ashok Kumar Saxena, 71, in a legal document said he invested $ 27,500 two decades ago at Paytm Parent One97 communication but had never been allocated shares, Reuters reported this month.
Paytm said the claim amounted to harassment and quoted it under the “criminal process” in the prospectus for proposed $ 2.2 billion in the initial public offering (IPO).
Saxena, a director from 2000 to 2004, has written to market regulators who urge him to stop Paytm from the IPO process.
Corporate governance experts say the struggle can trigger regulatory investigations and complicate IPO approval that can appreciate Paytm, supported by Chinese e-commerce leaders Alibaba Group Holding Ltd, up to $ 25 billion.
On Monday, the Delhi District Court Judge asked the final report of the police investigation within three weeks.
“I direct them to conclude an investigation as soon as possible,” said Metropolitan Magistrate Anesh Kumar.
The police have submitted a status report to the court but have not yet concluded the investigation, the senior lawyer Anupam Lal Das, represented Saxena, told Reuters after hearing.
A Delhi police officer declined to comment.
Paytm does not respond to requests for comments.
The heart of the dispute was a document seen by Reuters, 2001 and signed by Saxena and the current Paytm Chief Executive Vijay Shekhar Sharma, which stated that Saxena was to have 55% of communication with Sharma who had the rest.
Paytm, in a response to police notifications and those seen by Reuters, Denied Saxena was a founder and said the document in question was “only a” intention letter “not realized in the definitive agreement.
Sharma did not respond to a comment request.
This case will be heard on September 13 .