American
online payment gateway PayPal on Wednesday moved the Delhi High Court against
an order which ruled that it was a "payment system operator" under
the Prevention of Money Laundering Act (PMLA) and has to thus comply with
"reporting obligations" under it.
Senior
counsel appearing for PayPal argued before a bench headed by Chief Justice
Satish Chandra Sharma that the order passed by a single judge of the high court
was wrong.
Senior
advocate Mukul Rohatgi, appearing for the appellant, also said that the single
judge's order cannot be sustained in view of a recent decision of the high
court on the issue of payment system operator.
The
bench, also comprising Justice Sanjeev Narula, listed the appeal for further
hearing in September.
On
July 24, the single judge had set aside a penalty of Rs 96 lakh imposed on
PayPal by Financial Intelligence Unit (FIU) -- India for alleged non-compliance
with the "reporting obligations" under the law against money
laundering.
It
had also ruled that PayPal was liable to be viewed as a "payment system
operator" under the PMLA and has to thus comply with "reporting
obligations" under it.