Indian Court Sends A Notice To Central Bank Concerning Banking Restriction

CoinRecoil a digital asset platform has been admitted by the High Court of Delhi by announcing the hearing date which will be on May 24.

In addition to this, the court has also sent a notice to the Reserve Bank of India (RBI), The Union of India through Secretary, Ministry of Finance and GST Council. CoinRecoil is Kali Digital Ecosystems next project-earlier on, the firm has filed a petition against RBI’s stance to ban banks to deal with cryptocurrencies on April.18.

Based on the statement from CoinRecoil, the ban made by the RBI goes against Article 14 and Article 19(1) (g) of the Constitution of India. The principle highlights that every person has the right to equality in the eye of the law and all citizens have the right “to practice any profession, or to carry on any occupation, trade or business.”

According to an associate partner of law firm Khaitan &Co, Rashmi Deshpande, “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.”

From the appeal, Kali Digital Ecosystems referred to RBI’s statement as “arbitrary and unconstitutional” and went on to state that there is no set rule or regulation that is created by the GST Council for cryptocurrencies.

RBI was not explicit when it describes cryptocurrency’ by referring to it as a technological innovation and going in for an unclear statement, “Virtual Currencies (VCs), also variously referred to as cryptocurrencies and crypto assets, raise concerns of consumer protection, market integrity, and money laundering, among others.”