The Delhi High Court on Thursday adjourned a petition preferred by PayPal challenging a Rs 96 lakh penalty imposed on it by the Financial Intelligence Unit (FIU) for alleged violation of the Prevention of Money Laundering Act (PMLA) provisions.
The single-judge bench of Justice Rekha Palli adjourned the matter as the application seeking permission to file documents in a sealed cover was not on record and continued the interim protection given to PayPal by order dated January 12, 2021, whereby the court had stayed the FIU decision dated December 17, 2020.
On December 17, 2020, FIU had directed PayPal to pay a fine of Rs 96 lakh within 45 days and also register itself as a reporting entity as per Section 2 (wa) of the PMLA Act with the FIU, appoint a principal officer and director for communication within a fortnight of the receipt of the order.
Senior Advocate Sajan Poovayya, appearing on behalf of PayPal, opposed the application to file documents in a sealed cover and stated that the said documents should be delivered to PayPal as well.
On the previous date of hearing, the court had granted time to Centre to file a Counter Affidavit.
As per Section 2 (wa) of the PMLA Act, “reporting entity” means a banking company, financial institution, intermediary or a person carrying on a designated business or profession and under Section 12 of the PMLA Act, it is obligatory on the reporting entity to maintain the records of the business as per the provisions of the PMLA Act and PMLA Rules, 2005.