On Wednesday, the Delhi High Court has sought responses from the Reserve Bank of India (RBI), Enforcement Directorate (ED) and PayPal Payments Private Limited on a plea that the company has been illegally operating in India.

The plea that was filed by Abhijit Mishra through his advocate Payal Bahl, alleged that operations of PayPal as a payment system in India is against Section 4(1) of the Payment and Settlement System Act, 2007.

The section 4 (1) of The Payment and Settlement Systems Act, 2007, states that "no person other than the Reserve Bank shall commence or operate a payment system except under and in accordance with an authorization issued by the Reserve Bank under the provisions of the Act."

Mishra alleged that Paypal Payments Private Limited was not listed as an authorized operator in RBI's list of the 'Payment System Operators' to set up and operate in India under the Payment and Settlement Systems Act, 2007.

He further claimed that PayPal was operating as a foreign exchange dealer in contravention of the Foreign Exchange Management Act and through its unauthorized operations it has access to personal information of customers like Aadhaar and PAN, which is a violation of the Article 21 of the Constitution of India.

The court issued notices to all respondents and slated the matter for 18 September.

Inputs from ANI