Delhi HC seeks response from RBI, ED, PayPal on plea claiming illegal ops

New Delhi: The Delhi High Court on Wednesday sought responses from Reserve Bank of India (RBI), Enforcement Directorate (ED) and PayPal Payments Private Limited on a plea that the company is unauthorized and was doing the illegal operation in India as a Payment Systems in contravention of the law.
The petition filed by Abhi Mishra through counsel Payal Bahl stated that PayPal payment Pvt Ltd was operating in contravention of the Payment and Settlement Systems Act, 2007.
“The said section clearly mentions that no person, other than the Reserve Bank, shall commence or operate a payment system except to operate under and in accordance with an authorization issued by the Reserve Bank of India,” it said.
A division bench of Chief Justice D N Patel and Justice C Harishankar issued notices to all respondents and slated the matter for September 18.
The petitioner stated that Paypal Payments Private Limited is not listed as an authorized operator as per the list of the ‘Payment System Operators’ authorized by the RBI to set up and operate in India under the Payment and Settlement Systems Act, 2007 as published by the central bank on May 27, 2019.
He claimed that Paypal Payments Private Limited is operating as a foreign exchange dealer in contravention of the Foreign Exchange Management Act.