Updates on our Paypal limitation issue
Update 15 May 2012: We're glad to inform everyone that the Paypal Issue has been resolved. We hope the issue will not errupt anymore as Paypal had requested us to create a new Account and proceed with verification of the same. All vendors are requested to proceed with the respective payment collections.

Update 27-Apr-2012: We have received an appeal denied email. Paypal is really in a mess. Their systems are disconnected, one department does not know what is happening in the other. Upnon looking further in the dispute resolution page, it mentioned one of the payments sent (on 26 april 2012) was being investigated and response from the other party is awaited. We dont know what to do now.

While we cannot be anything more that just mook spectators to whatever Paypal is doing to our account internally, we would like to clear any outstanding dues of any of our service providers. If you know any other method which works like Paypal, or by which we may clear your dues, please let us know about it. We will arrange to clear the same at the earliest.
Update 26-Apr-2012: We were able to send a payment to one of our merchants using the new account and were in the process of calculating totals for other merchants and clearing their payments as well. But after a few minutes of sending this payment, we again received an email stating "Your account has been permanently limited". So again I was on phone with Paypal, this time she said this has happened because you closed your account in which a limitation was not resolved. So i mentioned that someone in Paypal only had suggested that, she just said she is sorry and would escalate the account for review.
Uodate (2) 23-apr-2012: We tried sending payment to one merchant and it worked. However, payments to pre-approved billing agreements are still being rejected. We called up Paypal and the lady told us that this is because of a limitation still on your account caused by our system not being able to verify your PAN details. So we added some necessary documents to the account and then when clicked "send" It said you have exceeded the number of attempts. So called up Paypal again, when asked how to resolve this problem, the lady suggested us to close the account and create a new one. We asked if it was sure that it will work. She replied in affirmative. And, she also remained on the line as I was doing the account closure procedure. Then the account was closed and she confirmed that she could see the account has been successfully closed. After that we opened a new account using the same information, whcih succeeded.
Update 23-Apr-2012: No mail still received, but I logged in to Paypal and that dreaded "account permanently limited" message was not showing (thank you Paypal!!). I tried to see more details and it was allowing me to see them. But the yellow "Your account is limited" message is still there. It seems they are still working on the account. So request a little more patience from our clients. We are hopeful that the account should be restored soon.

Update 20-Apr-2012: Spoke to Paypal Account Limitation Specialist, she said a card used on another linked account was resported as stolen by the bank. As far i could remember, I did not use any card on the said (another) account. BUt did not have details. So after cross-checking i called back Paypal, this time explained no card was used and gave necessary information, the gentleman executive said that does not seem to be the issue. He said let me check in details and I am more concerned about your PAN id etc not getting verified. Let me check in details and see if I can get it reviewed, please allow us 24 hours for the same. Meanwhile, we uploaded more documents in support of the requirements having been sufficed.
Paypal, Stay away from India if you can't handle the volume and culture!
Dear Valued Customers,
We regret to inform you that our services are badly affected due to ourPaypal account being permanently limited by some unthoughtful executives at Paypal. "The limitation cannot be appealed against.", says the last line. As you may already be aware there had been partial limitation on the account for the last 6 months but now we are unable to make any payments to our International service providers thereby crashing all our services right to the ground. Therefore., we request your co-operation and patience while we try to find means to get things working without Paypal.

We have also informed all our friends, clients, service providers and anyone we know about the issue. The general response we have had so far is that of shock.
You may read the full issue here.
 
We suggest:
• Avoid Paypal if you are based at India. Look for alternatives. Most Verified by Visa debit cards work for making payments.
• Spread awareness about this so that people may understand "Paypal's culture".
• Oppose the domestic payments business which Paypal is proposing to enter
• Encourage Local Indian providers instead of Paypal(proposed) for Domestic Payments
 
if you are interested in being a part of a proposed class action suit (Public Interest Litigation in India) against Paypal for the certain ways they perform, please send an email to <REMOVED ON 23.APR-2012> but please be advised that the discretion to accept will be solely based on a unanimous decision by a panel of lawyers.