Cryptocurrency to Be Recognised as ‘Property’ Under Indian Law: Madras High Court
Case Title:
S. Rajendran v. Union of India & Ors.
Citation: 2024 SCC OnLine Mad 6523
Forum: Madras High Court
Date of Judgment: June 2024
The case originated when the petitioner, S. Rajendran, an investor in cryptocurrency, reported the theft of his digital assets from an online trading platform. Authorities refused to act, arguing that cryptocurrency was neither “property” nor “goods” under existing statutes. The petitioner sought judicial intervention, asserting that cryptocurrencies have measurable value, transferability, and ownership rights — all features of property in law.
The Union of India and Reserve Bank of India (RBI) opposed the plea, contending that virtual currencies, being unregulated and lacking sovereign backing, cannot be recognised as legal property. However, the Court observed that the absence of regulation does not negate proprietary rights in assets that possess economic value.
Drawing upon the definitions of “movable property” under Section 22 of the Indian Penal Code, 1860, and “goods” under Section 2(7) of the Sale of Goods Act, 1930, the Court held that the scope of property extends beyond tangible items to include intangible digital assets such as software, trademarks, and now, cryptocurrencies.
The Court also cited global precedents, including the UK High Court’s decision in AA v. Persons Unknown (2019) and the Singapore case B2C2 Ltd v. Quoine Pte Ltd (2020), both of which affirmed cryptocurrency as property capable of ownership and protection.
Final Judgment
The Madras High Court declared that cryptocurrency constitutes property under Indian law, though not legal tender. Accordingly, theft, fraud, or misappropriation involving cryptocurrency will attract penal provisions under the Indian Penal Code and the Information Technology Act.
The Court directed the Tamil Nadu Cyber Crime Wing to investigate the petitioner’s complaint as property theft and urged the Central Government to expedite legislation for digital asset regulation, ensuring investor protection and transparency.
Significance
This judgment reinforces that digital currencies, though unregulated, enjoy legal protection as assets. It empowers investors with enforceable rights, promotes accountability in crypto transactions, and aligns India with global legal standards on virtual property. The ruling is a progressive stride toward a balanced framework for innovation and regulation in India’s digital economy.