Paytm founder Vijay Shekhar Sharma arrested, later released in Feb; here's why

Paytm founder and CEO Vijay Shekhar Sharma was arrested by Delhi on February 22 and later released on bail in a case of rash driving.

He had allegedly rammed his car, a Jaguar Land Rover (JLR), into the car of the District Commissioner of Police of South Delhi on Aurobindo Marg, India Today reported.

Meanwhile, Paytm later issued a clarification following the news reports on Sharma's arrest explaining that a complaint was filed in connection with an alleged minor motor vehicle incident. "There was no harm caused to any person or property in the said incident," Paytm said in a statement.

ALSO READ: Vijay Shekhar Sharma's arrest 'exaggerated', minor motor vehicle incident: Paytm

What had happened?

Vijay Shekhar Sharma was allegedly speeding his vehicle when he hit DCP Benita Mary Jaiker's car outside Mother's International School in Delhi.

The DCP's driver Deepak was out to fill petrol in the car. Sharma purportedly fled from the scene after hitting the car.

However, Deepak noted the vehicle's number and reported the accident to DCP Jaiker. A case was subsequently filed under Section 279 (rash or negligent driving) of the Indian Penal Code at the Malviya Nagar Police Station. 

It was then found that the vehicle belonged to a Gurugram-based company. Later, it was traced back to Vijay Shekhar Sharma who resides in South Delhi.

He was eventually called to the police station and arrested. A little while later, Sharma was granted bail as the crime fell under a bailable section of the Indian Penal Code.

However, Paytm further said that the "media reports claiming the nature of the arrest are exaggerated, as even the complaint against the vehicle was for a minor offence under a bailable provision of law."
 
Paytm concluded its statement stating that requisite legal formalities were completed on the same day.

Meanwhile, the Reserve Bank of India (RBI) has stopped Vijay Shekhar Sharma-promoted Paytm Payments Bank (PPBL) from opening new accounts amid "material supervisory concerns". 

Also Read: RBI directs Paytm Payments Bank to immediately stop onboarding new customers

This is the third time that Vijay Shekhar Sharma-promoted Paytm Payments Bank (PPBL) is facing action from the banking regulator since its inception in May 2017. It has been prohibited from opening new accounts for the second time.

Paytm Payments Bank was incorporated in August 2016 and formally began its operations in May 2017 from a branch in Noida. As per the last disclosed numbers, PPBL had around 6.4 crore customers.

Sharma holds 51 per cent stake in Paytm Payments Bank (PPBL), while the remaining 49 per cent is held by Paytm.