There has been a delay in withdrawal of funds from Paypal to Indian bank accounts and Paypal has sent this mail.

Dear ***,
We are currently experiencing an issue processing withdrawals to Indian bank accounts. As a result, there may be some delay in withdrawals from your PayPal account to your bank account.

We apologize for any inconvenience this has caused, and are doing all we can to resolve the issue.

Thank You,
PayPal

From forums, it appears that Paypal withdrawal requests from 27th January 2010 have not yet been credited. Last year (2009), there was a similar delay and funds were credited after 15 days in some cases.

Also refer to : http://www2.ebay.com/aw/in/200903061108272.html