Delhi High Court - Orders
Paypal Payments Private Limited vs Financial Intelligence Unit India & Anr on 31 May, 2022
Author: Yashwant Varma
Bench: Yashwant Varma
$~4
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 138/2021, CM APPLs. 421/2021, 36894/2021
PAYPAL PAYMENTS PRIVATE LIMITED ..... Petitioner
Through: Mr.Sajan Poovayya, Sr. Advs.
alongwith Mr.Anuj Berry, Mr.Shiv
Johar, Mr.Shikhar Mehra, Ms.Raksha,
Advs.
versus
FINANCIAL INTELLIGENCE UNIT INDIA & ANR.
..... Respondents
Through: Mr.Parag P. Tripathi, Sr. Adv. with
Mr.Ramesh Babu M. R., Ms.Manisha
Singh and Ms.Nisha Sharma, Advs.
for R-2.
Mr.Zoheb Hossain, Adv. for
Directorate.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
ORDER
% 31.05.2022
1. The Court notes that when the present writ petition was entertained, a learned Judge on 12 January 2021 had passed the following directions:-
"12. In the meanwhile, the following directions are issued:
i. The Petitioner shall, henceforth, maintain records of all transactions under Section 12(l)(a) of the PMLA, in electronic form on a secure server, located in India, for the same to be retrieved, if required, subject to further orders in this writ petition.
ii. The Petitioner shall furnish a bank guarantee, to the satisfaction of the Registrar General of this Court, for a sum of Rs.96 lakhs. The said bank guarantee shall be deposited within two weeks.
iii. The Managing Director of the Petitioner Company shall furnish an undertaking to the Court to the effect that it would abide by any orders that may be passed in this petition, including furnishing of data (irrespective of where the servers are located), as may be required by a Signature Not Verified Digitally Signed By:NEHA Signing Date:01.06.2022 18:21:44 reporting entity under Section 12 of the PMLA, if the Petitioner is unsuccessful in this petition. The said affidavit of undertaking be filed within two weeks by the Petitioner."
2. Although the matter is ready for final hearing, since vacations are to commence, learned counsels for parties have prayed for the matter being placed for final disposal upon reopening.
3. Mr. Hossain, learned counsel appearing for the Directorate, however, prayed for certain interim directions being issued bearing in mind the conditions which had been framed by the Court in its order of 12 January 2021.
4. Drawing the Court's attention to paragraph 12 (i) and (iii) of the said order, Mr. Hossain submits that the petitioner was required to maintain a record of all transactions in terms of the aforesaid directions in an electronic form on a secure server located in India for the same being retrieved if required. The attention of the Court has further been drawn to the requirement of the Managing Director of the petitioner undertaking before this Court to abide by all further orders as may be passed including furnishing of data (irrespective of where the servers are located) as and when required by the respondents and in accordance with the obligations which are placed on a reporting entity under Section 12 of the PMLA.
5. Mr. Poovayya, learned Senior Counsel appearing for the petitioner, states that in compliance with paragraph 12 (i) and (iii) of the order, the petitioner has duly maintained a record of all transactions and that it would have no objection to the entire record and data stored till date being handed over to the Financial Intelligence Unit. It is additionally submitted that the transfer of the said data pursuant to directions framed by the Court should Signature Not Verified Digitally Signed By:NEHA Signing Date:01.06.2022 18:21:44 not be construed as the petitioner accepting it being a "reporting entity"
under the PMLA and without prejudice to its rights and contention as raised in the writ petition.
6. In view of the aforesaid, let the petitioner proceed further. The petitioner may hand over the entire record/data maintained and stored in terms of Paragraph 12(i) of the order dated 12 January 2021. The aforesaid transfer shall be without prejudice to the rights and contentions of the petitioner and shall not be construed as it conceding to being treated as a reporting entity under the PMLA. The interim protection accorded in other respects shall continue till the next date fixed.
7. List again on 04.08.2022.
YASHWANT VARMA, J.
MAY 31, 2022 bh Signature Not Verified Digitally Signed By:NEHA Signing Date:01.06.2022 18:21:44