1 / 13Paytm's $2.2 billion IPO is facing an unusual hurdle - a 71-year-old former director has urged markets regulator to stall the offering, alleging he is a co-founder who invested $27,500 two decades ago but never got shares.2 / 13In legal documents seen by Reuters, Paytm says the claim by Ashok Kumar Saxena and allegations of fraud in a police complaint in New Delhi are mischievous attempts to harass the firm.3 / 13The dispute though is cited under 'criminal proceedings' in Paytm's July IPO prospectus filed for regulatory approval.4 / 13Mr Saxena denied harassment and said Paytm had a high profile position that meant a private individual like him was not in a position to harass the company.5 / 13Mr Saxena has approached the Securities and Exchange Board of India (SEBI) to stall the IPO, arguing investors could lose money if his claim is proved right, according to a previously unreported complaint seen by Reuters.6 / 13Shriram Subramanian of shareholder advisory firm InGovern said the tussle could spark regulatory inquiries and complicate or delay the approval of Paytm's IPO that could value it at up to $25 billion.7 / 13'SEBI will need assurance that it will not impact the company and the public shareholders once listed,' Mr Subramanian said.8 / 13Irrespective of what the regulator decides, the dispute could become a legal headache ahead of the much-awaited IPO of Paytm, which counts China's Alibaba and Japan's SoftBank among its investors. Neither responded to a request for comment.9 / 13At the heart of the dispute is a one-page document signed between Mr Saxena and Paytm's billionaire CEO, Vijay Shekhar Sharma, in 2001.10 / 13The 'Agreement Between Shareholders of One97' paper, was also reproduced by Paytm before police and signed by the two men, shows Paytm's police submission which is not public.11 / 13Paytm's rise has been phenomenal, with its app a household name in India for digital payments. The face of the company has been flamboyant CEO Mr Sharma, 43, whose app rivals those run by Google and Walmart.12 / 13Paytm's incorporation documents in the government database show Mr Saxena as a director of the company between 2000 and 2004.13 / 13 In its police response, Paytm agrees he was among the first directors of the company's parent and extended the funds to it. But he 'gradually seemed to lose interest', Paytm says.