A petition filed by Kali Digital EcoSystem cryptocurrency startup based in Ahmedabad in Delhi High Court and High Court issued a notice to The Union of India through Secretary, Ministry of Finance, GST council and Reserve Bank of India (RBI).
On April 16, 2018, Kali Digital had challenged circular of RBI dated April 6, 2018 “Withdrawing Banking Support to Virtual Currency Exchanges”
“The company requested Hon’ble High Court to issue an appropriate writ, order or direction quashing circular bearing reference number DBR.No.BP.BC.104/08.13.102/2017-18, dated April 6, 2018 issued by RBI to be arbitrary, unconstitutional and violative of Article 14 and Article 19(1)(g) of the Constitution of India, 1950 (“Constitution of India”).”
Rashmi Deshpande advocate for the petitioner Kali Digital said “The move by the RBI has put the burgeoning cryptocurrency sector in jeopardy and may affect the basic rights of such entities to carry on any trade. The circular appears to be arbitrary and unconstitutional since it does not give strong facts as to why RBI is against the business of cryptocurrencies. Logical and well-thought arguments backed by solid facts are the primary requirements under the Constitution to put a stop to any business in India.”
In its petition, Kali Digital has also tagged Union of India and Goods and Service Tax Council as respondents along with the RBI.Ministry of Finance has assigned powers to RBI to made appropriate regulations with respect to cryptocurrencies in the Goods and Services Tax law.
This can be seen as a good sign for cryptocurrency users if the court gives a decision in favor of cryptocurrency as India is also one of leading users of cryptocurrencies.
Last week many leading cryptocurrency exchanges based in India announced to move out of the country because of this move by the RBI.