PayPal has posted a blog article covering recent developments about receiving payments in India:
https://www.thepaypalblog.com/2010/02/update-on-paypal-situation-in-india/
Note that E-junkie checkout payments to merchants in India should not have been affected by the recent payment reversals mentioned in their blog post, as checkouts would never be treated by PayPal as "personal" payments (which can only be sent manually using the Send Money tab in the sender's PayPal account).
Now, regarding the matter of withdrawing funds from your PayPal balance to deposit in a local bank in India, we'll quote PayPal's blog post on that subject here:
3. When will local bank withdrawals be available?
Customers should be able to withdraw their funds to a local [Indian] bank within the next few days. In the meantime, we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges.
