The Delhi High Court, on Wednesday, has issued a notice to the Reserve Bank of India (RBI), and PayPal directing to stop its operations in India. PayPal Holdings, Inc. is an American company operating a worldwide online payments system which supports online money transfers and serves as an electronic alternative to traditional paper methods like cheques and money orders. The notice came out of a result of a petition filed by Abhijit Mishra alleging that PayPal’s operation in India is in violation of Section 4 of the Payments and Settlement Systems Act, 2007. The matter was listed before a division bench of Chief Justice D.N. Patel and Justice C. Hari Shankar seeking direction to RBI to initiate action against PayPal for violation of the Payment and Settlement Systems Act, 2007, and to impose a penalty under FEMA. The petitioner has also prayed for an investigation against PayPal by the Enforcement Directorate (ED), and the subsequent transfer of their allegedly illegal profits to the Prime Minister's Relief Fund. The matter will be heard next on September 18.
Tags : Legal