ClustersNorth Zone

Delhi High Court Sends Legal Notices to PayPal India

Sharing is caring!

The Delhi High Court asked the Reserve Bank of India (RBI), Enforcement Directorate (ED) and PayPal to file a reply to a plea alleging that the company PayPal was operating illegally in the country.

A division bench of Chief Justice D.N. Patel and Justice C. Harishankar issued notices to RBI, ED and PayPal and slotted the matter for hearing on September 18.

The court was hearing a plea filed by Abhi Mishra through his counsel Payal Bahl.

The petitioner stated that Paypal Payments Pvt Ltd was not listed as an authorized operator as per the list of the ‘Payment System Operators’ authorised by the Reserve Bank of India to set up and operate in India under the Payment and Settlement Systems Act, 2007.

ALSO READ: PAYPAL News on SMEStreet 

The plea said that PayPal payment Pvt Ltd was unauthorized and was illegally operating in India as a Payment Systems in contravention of the Section 4 sub section 1 of the Payment and Settlement Systems Act, 2007.

The section clearly mentioned that no person other than the Reserve Bank shall commence or operate a payment system except under and in accordance with an authorization issued by the Reserve Bank under the Act.

Mishra further claimed that Paypal Payments Pvt Ltd was operating as a foreign exchange dealer in contravention of the Foreign Exchange Management Act.

Paypal through its unauthorized operation in India as a Payment and Settlement System has unmonitored and unauthorized access to the personal information such as Aadhaar and PAN.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

Related Articles

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: