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TMI Blog2021 (1) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... system operator and a `reporting entity , requires consideration. A perusal of the RBI s affidavit filed in another writ petition, shows that the stand of the RBI is that the Petitioner would not be attracted by the Payments and Settlements Scheme, under the PSS Act. The stand of the RBI in the affidavit filed in another writ petition appears to be in contrast with the view taken in the impugned order. The RBI and Union of India ought to take a clear stand after due consultation as to whether they consider platforms such as that of the Petitioners as being within the purview of the PML Act. Accordingly, the Secretary, Ministry of Finance, is directed to constitute a Committee with a nominee of the RBI and the Ministry of Finance, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present petition challenges the impugned order dated 17th December, 2020, passed by the Director, Financial Intelligence Unit-India, Ministry of Finance, Government of India. By the impugned order, the Petitioner has been held to be a reporting entity and a payment system operator , under Section 2(1)(wa) and Section 2(1)(rc) of the Prevention of Money Laundering Act, 2002 (hereinafter, PML Act ). Further, the impugned order finds the Petitioner guilty of violations under the provisions of the PML Act, and has imposed a penalty amounting to ₹ 96 Lakhs. The impugned order, thereafter, directs the Petitioner to register itself as a reporting entity with the Financial Intelligence Unit- India (hereinafter, FIU-IND ) as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar and submit that the Petitioner is only a facilitator platform which conducts two types of transactions. The first type of transactions are transactions in foreign exchange, which are merely facilitated between registered reporting entities. The second type of transactions are domestic transactions in Rupees. It is submitted by Mr. Rohatgi, ld. Senior counsel that each and every foreign exchange transaction is reported by the concerned reporting entity and the Petitioner is merely providing a facilitator platform and charging a nominal fee for each of the transactions. No foreign exchange is actually collected or paid by the Petitioner platform. He categorically submits and assures the Court that in the transactions facilitated by the Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Division Bench of this High Court dated 5th December, 2018, in W.P.(C) 12494/2018 titled, Aasma Mohammed Farooq and Anr. v Union of India. 7. Heard ld. counsels for the parties and perused the impugned order and the stand of the RBI in the affidavit relied upon by the Petitioners. The case of the Petitioner is that it merely facilitates transactions and does not actually enter into any transactions with either of the parties conducting the same. On a query from the Court, Mr. Rohtagi, ld. Senior Counsel states that the Petitioner is not a payment wallet. 8. A perusal of the RBI s affidavit shows that the stand of the RBI is that the Petitioner would not be attracted by the Payments and Settlements Scheme, under the PSS Act. The rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the present case, it is deemed appropriate to implead Reserve Bank of India as Respondent No.2. Ordered accordingly. Let the amended memo of parties be filed within one week. 11. The stand of the RBI in the affidavit referred above appears to be in contrast with the view taken in the impugned order. The RBI and Union of India ought to take a clear stand after due consultation as to whether they consider platforms such as that of the Petitioners as being within the purview of the PML Act. Accordingly, the Secretary, Ministry of Finance, is directed to constitute a Committee with a nominee of the RBI and the Ministry of Finance, to clarify their position as to whether companies like the Petitioners who claim to be facilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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