Delhi HC Rejects Investor Pleas Against Crypto Exchange Bitbns

The Delhi High Court dismissed a batch of petitions filed by crypto investors against the exchange Bitbns. Justice Purushaindra Kumar Kaurav ruled that the court cannot grant the relief the investors sought. 

Petitioners, including Rana Handa and Aditya Malhotra, had asked for tighter regulation of crypto platforms. With a CBI probe into Bitbns and release of allegedly stuck funds. But the court said Bitbns is a private company and does not fall under writ jurisdiction. It advised investors to seek other legal remedies instead.

Court’s Key Observations and Legal Reasoning

The court made it clear that Bitbns is not a “State” entity under Article 12 of the Constitution. Because of this, it can’t be targeted through writ petitions under Article 226. The judge noted that the exchange doesn’t perform any public function. That would justify court intervention at this level. 

Meanwhile, the bench also refused to order a CBI or SIT investigation. It said such directions are issued only in rare and exceptional cases. The court cited past Supreme Court rulings that set a high bar for these probes. Importantly, it observed that in some complaints. Even an FIR had not been registered yet. The court further stressed that framing crypto regulations is a policy matter for Parliament. It is also relevant to regulators like RBI and SEBI, not the judiciary.

Background on the Bitbns Dispute

The case stems from long running user complaints against Bitbns. Several investors claimed they were unable to withdraw funds from the platform since 2025. Petitioner Rana Handa told the court he had invested about ₹14.22 lakh since 2021. But faced withdrawal restrictions later.

Users also alleged sudden withdrawal limits and valuation discrepancies in their accounts. Some said balances appeared lower than expected. These issues pushed affected investors to approach the National Cyber Crime Portal and later the Delhi High Court. The matter gained attention as India still lacks a comprehensive crypto regulatory framework. It leaves many disputes in a grey area.

What the Ruling Means for Investors

The decision is a setback for crypto investors hoping for quick relief through the Delhi High Court. The bench clearly directed them toward alternative legal paths. Investors can file FIRs with local police if they suspect fraud or criminal breach of trust. They may also pursue civil suits or consumer complaints to approach jurisdictional magistrates for compensation against the Bitbns. 

Through the ruling highlights the limits of judicial intervention in the still unregulated crypto sector. Many users on social media expressed frustration after the order. But legal experts noted the judgment follows established constitutional principles. For now, the broader issue remains unresolved. The court left the door open for legislative action. But until India creates a clear crypto framework. The disputes between exchanges and users may continue to move slowly through traditional legal channels.

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