In a significant development, the Supreme Court of India has reinstated a petition seeking the ban of opinion trading apps and websites. This petition, originally dismissed by the Gujarat High Court, was revived after the Supreme Court criticized the lower court for dismissing it without proper examination, citing the pendency of a similar case in the Bombay High Court.
The case, Sumit Kapurbhai Prajapati v. Union of India & Others, challenges the dismissal of a Public Interest Litigation (PIL) that aimed to ban opinion trading platforms. The petition, filed by Sumit Kapurbhai Prajapati, argues that opinion trading apps, which promote betting on various outcomes, should be regulated or banned due to their potential to encourage gambling and risky behavior, particularly among children.
Prajapati’s counsel argued that gaming laws differ between Maharashtra and Gujarat, and that the issue of whether opinion trading apps should be classified as gambling needed to be addressed separately. Prajapati raised concerns after observing individuals, especially minors, compulsively spending money on these apps, which were marketed as offering “guaranteed profits with no risk,” a characteristic he argued was misleading and akin to promoting gambling.
The Confederation of All India Traders (CAIT) has also recently urged the Indian government to intervene, warning that opinion trading platforms could undermine the integrity of democratic processes. In a letter to the Ministers of Electronics and Information Technology and Commerce, CAIT described these platforms as a form of “digital satta” (online gambling), stressing their potential harm to electoral democracy. CAIT expressed concerns that these platforms allow users to bet on election outcomes, influencing public opinion and compromising democratic values.
In February 2025, the Supreme Court began reviewing the petition after the Gujarat High Court dismissed Prajapati’s petition due to a similar case pending in the Bombay High Court. However, Prajapati’s counsel maintained that the issue needed to be considered separately, especially in light of the different legal frameworks in Gujarat and Maharashtra.
The Supreme Court bench, led by Justices Abhay S. Oka and Ujjal Bhuyan, disagreed with the Gujarat High Court’s dismissal and ordered the petition to be reinstated. The bench directed the Gujarat High Court to hear the case on April 14, 2025, while allowing all rights and contentions of the parties to remain open. The court also emphasized that it would be up to the Gujarat High Court to determine what relief, if any, should be granted.
This case is expected to have significant implications for the regulation of opinion trading apps in India. As the matter progresses, the courts will likely determine whether these platforms should be treated as gambling activities and whether their regulation is necessary to protect users, especially vulnerable groups like minors.
Reference: https://www.storyboard18.com/gaming-news/supreme-court-restores-petition-seeking-ban-on-opinion-trading-apps-59903.htm
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