Petition against Opinion Trading Apps reinstated by SC

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Petition against Opinion Trading Apps reinstated by SC

The Supreme Court of India has reinstated a petition seeking a ban on opinion trading apps, criticizing the Gujarat High Court for dismissing the case without proper examination. The petition, filed by Sumit Kapurbhai Prajapati, challenges the legality of these platforms, arguing that they promote gambling under the guise of financial speculation.

As reported by Storyboard 18, the Supreme Court took up the special leave petition after the Gujarat High Court dismissed Prajapati’s plea, citing a similar case pending before the Bombay High Court. The Gujarat High Court had suggested that Prajapati file an intervener application in that case instead. However, Prajapati’s counsel contended that gaming laws in Maharashtra and Gujarat differ, and the case needed to be heard separately.

Prajapati initiated the petition after noticing that users, including minors, were engaging in betting activities on these platforms. He came across multiple YouTube videos promoting opinion trading apps as risk-free money-making opportunities, which he argued encouraged gambling behavior.

The Supreme Court bench, comprising Justices Abhay S. Oka and Ujjal Bhuyan, objected to the Gujarat High Court’s dismissal of the PIL. Senior advocate Dr. Abhishek Manu Singhvi, representing the opinion trading platforms, argued that the case should be referred back to the Gujarat High Court and limited to Gujarat jurisdiction since a similar petition was already being heard in Bombay.

Ultimately, the Supreme Court granted leave and reinstated the appellant’s petition, directing the Gujarat High Court to hear the matter on April 14, 2025. The court emphasized, “All rights and contentions of the parties have been left open, and it shall be up to the Gujarat High Court to determine what reliefs should be granted or whether the petitioners’ reliefs need to be modified. Matter disposed of accordingly.”

In a related development, the Confederation of All India Traders (CAIT) has formally urged the Indian government to impose a ban on opinion trading apps and websites. In a letter addressed to Ashwini Vaishnaw, Minister of Electronics and Information Technology, and Piyush Goyal, Minister of Commerce and Industry, CAIT described these platforms as “digital satta” (online gambling) and warned of their risks.

CAIT further raised concerns about the influence of these platforms on India’s democratic process. The organization warned that prediction-based opinion trading apps allow users to bet on election outcomes, potentially manipulating public opinion and threatening the integrity of the electoral system. Given the scale of these platforms, CAIT has urged swift action to prevent any adverse impact on democracy.

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