May 20, 2018: Petition of Ahmedabad based CoinRecoil against RBI’s crypto ban is shifted to the Supreme Court. The Supreme Court of India via its order dated May 17 has transferred petition of CoinRecoil and others challenging RBI circular dated April 6, 2018 “Withdrawing Banking Support to Virtual Currency Exchanges”. The Apex court has directed two pending petitions in Delhi High Court and one in Calcutta High Court in this regard to be clubbed with petition W.P. (C) No. 1071 of 2017. Next hearing of this case is July 20, 2018. The learned Attorney General for India will be apprised with the details of this case to assist Supreme Court in this case.
The three judge bench of Supreme Court, headed by Chief Justice of India issued order for the transfer of all pending petitions linked in this case to the top court. Accordingly petition W.P. (C) No.3677/2018 of Kali Digital Eco-Systems Pvt Ltd (CoinRecoil) pending before Delhi High Court is moved to Supreme Court. All five writ petitions have been filed before the courts challenging RBI’s circular.
Speaking on the matter, Ms. Rashmi Deshpande, Associate Partner, Khaitan & Co.
“The Supreme Court has recently transferred the entire batch of petitions pending at High Court level with respect to the contentious issue of RBI effectively banning transactions in crypto-currencies. This decision highlights the importance of this issue at a national level from not just a legal, but also an economic standpoint. We strongly believe that the RBI’s circular to effectively discourage the business of crypto-currencies exchanges is an arbitrary decision against the freedom of right to trade guaranteed by the Constitution. We are hopeful that justice will be meted out at the Supreme Court level.”
Supreme Court in its order has added that, petitioners in W.P.(C) No.1071 of 2017 etc. shall be at liberty to submit a representation to the competent authority of Reserve Bank of India within two weeks hence which shall be dealt with in accordance with law. Apex Court has stayed of further proceedings in the above mentioned cases sought to be transferred and directed that no High Court shall entertain any petition relating to the circular No.DBR.No.BP.BC.104/08.13.102/201718 dated 06.04.2018 issued by the RBI on “Prohibition on dealing in Virtual Currencies”.
Kali Digital Eco-Systems Pvt Ltd (CoinRecoil) had filed a petition against Reserve Bank of India, The Union of India through Secretary, Ministry of Finance and GST Council in Hon’ble High Court of Delhi on April 16, 2018 challenging RBI circular dated April 6, 2018 “Withdrawing Banking Support to Virtual Currency Exchanges” in the Delhi High Court.
CoinRecoil requested Hon’ble High Court to issue of an appropriate writ, order or direction quashing circular bearing reference number DBR.No.BP.BC.104/08.13.102/2017-18, dated 6 April 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”). Kali Digital Eco-Systems Pvt Ltd is developing FIAT-to-Crypto platform for buying, selling and storing digital assets with the trade name of CoinRecoil. Official launch of CoinRecoil is scheduled for August 2018. Company also plans to expand operations in Canada, Singapore, UAE and Australia.
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