Ahmadabad’s Crypto Firm May Approach Supreme Court To Challenge RBI’s Ban On Virtual Currencies

Kali Digital Ecosystems, an Ahmadabad-based crypto firm, is planning to approach the Supreme Court of India with a request to bring forward the date of next hearing on the circular of Reserve Bank of India to ban banks from carrying out transactions in cryptocurrencies. The next hearing is scheduled for July 20 whereas according to the central bank’s order, all lenders and financial institutions in India will have to wind down their dealings in virtual currencies by July 6.

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Kali Planning Alternative Move

The crypto firm wants the hearing to take place before the last date decided by RBI. Apart from that Kali is also gearing up with an alternative plan to approach the central bank and request officials put off the order to the lenders in case the Supreme Court hearing is not shifted to an earlier date. According to a company source, the company is exploring the options whether to approach RBI or the Supreme Court in the matter. Incidentally, the apex court has even barred the High Courts of the country from entertaining any lawsuits related to the circular banning the digital currency transactions.

And that is the reason why Kali is planning to either approach RBI directly or the Supreme Court. Kali has said in its plea that this circular by RBI is a violation of the freedom to trade according to Article (1) (g) of the Indian Constitution.

All Petitions Challenging RBI’s Circular Transferred To SC

It should be noted that in April 2018, the company filed a petition in the Delhi High Court challenging RBI’s circular that asked all banks to withdraw support to virtual currency exchanges. The Delhi High Court’s bench comprising Justice S Ravindra Bhat and Justice AK Chawla in response to this petition asked response from RBI, GST Council, and the Centre. The cryptocurrency exchange of Kali, CoinRecoil.com also filed a writ petition in April against RBI’s circular, requesting that the High Court quash the circular. In response, the Supreme Court barred the High Courts from accepting any such petitions and the case of Kali Digital Ecosystems has now also been transferred to the Apex court along with all other such cases.

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