Delhi High Court Seeks Response Of Finance Ministry’s Response In PayPal Appeal Against Being Declared ‘Payment System Operator’ Under PMLA

NEW DELHI

The Delhi High Court in the case Paypal Payments Private Limited v. Financial Intelligence Unit India AndAnr observed and seek response of the Union Government on an appeal filed by PayPal wherein it challenged the order of the single judge holding that the payment platform is liable to be viewed as the payment system operator and it obliged to comply with the reporting entity under the Prevention of Money Laundering Act, 2002.
The Division bench comprising of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula in the case observed and has impleaded the Union Ministry of Finance in the matter and the court directed for filing the detailed response.
Earlier, the court seek response of Financial Intelligence Unit, FIU in the plea.
The counsel, Senior Advocate Sandeep Sethi appearing for Paypal submitted before the court that the payment platform is only a payment gateway and that it neither makes any payment nor receives the same.
On the other hand, the ASG S V Raju appearing for representing Financial Intelligence Unit, FIU India submitted before the court that the officials of PayPal have themselves said that the payment platform can be used for terror funding.
It has also been stated by the counsel, ASG S V Raju that suppose, someone from Lashkar-e-Taiba sitting in Pakistan sends money to a person in Delhi to get explosives, this court will not have the way of knowing it.
Accordingly, the court listed the matter to be next heard on October 18, 2023.