Well, I have been using eBay India for a long time now, maybe for more than 5 years and never had a problem. To be honest I have bought things worth over tens of thousands of rupees without any problem and the 'guarantee' of Paisa Pay at eBay India has always been a solace for me.
But does it work, if you need it?
I once ran into a problem for a thing worth as little as Rs 200/-. The item simply did not reach me and I filed for a refund. The seller gave a digital "reciept" which simply had my name and time and date of supposed delivery, which was enough for eBay India to accept that the delivery had been made. No POD / scanned image of reciept showing who it was given to. eBay India rejected my request and my pleading to them that I had actually not recieved the item.
Thankfully the value was just Rs 200/-, if it was higher all the money would have gone. But it just shows how the so called Paisa Pay Guarantee of eBay India works. Proofs of delievery are accepted by eBay India without even a cursory investigation.
Proof accepted by eBay India as evidence of delivery of item, which just has my first name and a fictitious date and time
Personally, I will never ever again buy anything from eBay India, and the "guarantee" of Paisa Pay is just in name only.