Paypal Payments Private Limited vs Financial Intelligence Unit India

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Del) 3078

YASHWANT VARMA
Paypal Payments Private Limited – Appellant
Versus
Financial Intelligence Unit India – Respondent

Advocates appeared:
Mr. Kapil Sibal and Mr. Sajan Poovayya, Sr. Adv. with Ms. Shally Bhasin Ms. Shreya Mukerjee, Mr. Prateek Gupta, Ms. Varshini Sudhinder and Mr. Palash Maheshwari, Advs., for the Petitioner.
Mr. Zoheb Hossain, SSC with Mr. Vivek Gurnani and Ms. Farheen Penwale, Advs. for R-1 Mr. Parag P. Tripathi, Sr. Adv. with Mr. Ramesh Babu, M. R., Ms. Manisha Singh, Mr. Rohan Srivastava and Ms. Mishika Bajpai, Advs., for the 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

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2023 Supreme(Del) 3078

YASHWANT VARMAPaypal Payments Private Limited – AppellantVersusFinancial Intelligence Unit India – Respondent

YASHWANT VARMA
Paypal Payments Private Limited – Appellant
Versus
Financial Intelligence Unit India – Respondent