PAYPAL PAYMENTS PRIVATE LIMITED vs FINANCIAL INTELLIGENCE UNIT INDIA & ANR.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Online)(DEL) 5496

HIGH COURT OF DELHI
PAYPAL PAYMENTS PRIVATE LIMITED – Appellant
Versus
FINANCIAL INTELLIGENCE UNIT INDIA & ANR. – Respondent

J U D G M E N T

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 Limited1, the petitioner impugns the order dated 17 December 2020 passed by the first respondent the Financial Intelligence Unit India2 holding it to be a ―reporting entity‖ under the Prevention of Money Laundering Act 20023 and consequently proceeding to impose monetary penalties for it having failed to comply with the reporti

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2023 Supreme(Online)(DEL) 5496

HIGH COURT OF DELHIPAYPAL PAYMENTS PRIVATE LIMITED – AppellantVersusFINANCIAL INTELLIGENCE UNIT INDIA & ANR. – Respondent

HIGH COURT OF DELHI
PAYPAL PAYMENTS PRIVATE LIMITED – Appellant
Versus
FINANCIAL INTELLIGENCE UNIT INDIA & ANR. – Respondent