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YASHWANT VARMA
Paypal Payments Private Limited – Appellant
Versus
Financial Intelligence Unit India – Respondent
JUDGMENT
Yashwant Varma, J.
For ease of reference, refer the table as under:-
| S.NO. | TITLE | REFERENCE(s) |
| A. | PREFACE | Paras 1-3 |
| B. | PA's AND OPGSP's- REGULATORY FRAMEWORK | Paras 4- 7 |
| C. | ESSENTIAL FACTS | Paras 8-10 |
| D. | PSS ACT & PMLA- THE STATUTORY STRUCTURE | Paras 11-32 |
| E. | PAYPAL'S CHALLENGE | Paras 33-58 |
| F. | CONTENTIONS OF FIU-IND | Paras 59-75 |
| G. | RBI'S POSITION | Paras 76-88 |
| H. | PROCEEDINGS ON THE PETITION | Paras 89-97 |
| I. | MONEY LAUNDERING - GLOBAL EXPERIENCES | Paras 98-106 |
| J. | CENTRAL THEME OF THE PSS ACT | Paras 107-122 |
| K. | THE PARI MATERIA QUESTION | Paras 123-127 |
| L. | PAYMENT SYSTEM UNDER THE PMLA | Paras 128-149 |
| M. | PAYPAL'S GLOBAL COMPLIANCES | Paras 150-152 |
| N. | PAYPAL AND TPAPs' | Para 153 |
| O. | PENALTY UNJUSTIFIED | Paras 154-163 |
| P. | THE DEEMING FICTION ARGUMENT | Para 164 |
| Q. | DISPOSITIF | Paras 165-168 |
A. PREFACE
1. PayPal Payments Private Limited [PayPal], the petitioner impugns the order dated 17 December 2020 passed by the first respondent the Financial Intelligence Unit India [FIU-IND] holding it to be a 'reporting entity' under the Prevention of Money Laundering Act 2002 [PMLA] and consequently proceeding to impose monetary penalties for it having failed to comply with the reporting obligations as placed under the Prevention of Money Laundering (Maintenance of Record
The central legal point established in the judgment is the need for clarification on whether facilitators of monetary transactions should be categorized as 'payment system operators' and 'reporting e....
The main legal point established is that Google Pay, operating as a third-party UPI enabled app, does not require separate authorization under the PSS Act, 2007, as it is not a Payment System Provide....
Anticipatory bail under the Prevention of Money Laundering Act requires demonstration of reasonable innocence and lack of likelihood to reoffend; both criteria unmet, justifying denial of bail.
The court established that the burden of proof lies with the prosecution to demonstrate reasonable grounds for believing an accused is guilty under the PMLA, and that mere allegations without substan....
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