Court advises petitioner to seek statutory remedies for grievances against cryptocurrency exchange platform.
In a significant ruling, the Delhi High Court, presided by Justice Purushaindra Kumar Kaurav, dismissed a petition filed by Rana Handa against Bitbns Internet Private Limited and others. The petitioner had sought the constitution of a Special Investigation Team (SIT) under the aegis of the Central Bureau of Investigation (CBI) to investigate allegations of financial fraud and cyber-attacks by the cryptocurrency exchange platform. Additionally, the petitioner sought stricter regulatory policies for cryptocurrency exchanges and the release of his investments.
The court acknowledged its power under Article 226 of the Indian Constitution to direct a CBI investigation but emphasized that such power must be exercised sparingly and only in exceptional circumstances. The court found no prima facie material or exceptional circumstances to warrant the constitution of an SIT. Justice Kaurav advised the petitioner to pursue statutory remedies, including lodging a First Information Report (FIR) and approaching the jurisdictional magistrate in case of non-registration of FIR.
Furthermore, the court declined the petitioner's prayer for the release of investments, as the respondents, being private entities, are not amenable to writ jurisdiction under Article 12 of the Constitution. The court noted that the petitioner could seek appropriate legal recourse for the recovery of investments.
In response to the petitioner's request for stricter policies for cryptocurrency exchanges, the court reiterated that it cannot issue a writ of mandamus to the legislature to enact specific laws. The existing legislative framework provides remedies for addressing grievances related to cryptocurrency exchanges, and there is no legislative vacuum justifying the court's intervention.
The court's decision underscores the judiciary's cautious approach in directing investigations and framing of policies, emphasizing the need for legislative action in addressing regulatory gaps in the cryptocurrency sector.
Bottom Line:
Petitioner's grievance regarding cryptocurrency exchange platform and prayer for stricter policies, investigation by SIT, and release of investments - Court declined prayer for constitution of SIT and framing of stricter policies due to lack of exceptional circumstances and absence of legislative vacuum, citing existing remedies under statutory framework.
Statutory provision(s): Article 226, Article 12 of the Constitution of India, 1950
Rana Handa v. Bitbns Internet Private Limited, (Delhi) : Law Finder Doc id # 2857795
