When Gokhale’s plea to quash the case was heard on Monday (April 15), Justice Hasmukh Suthar noted the concept of crowdfunding is very new in India and questioned if there is any regulation or legal recognition of the same in India.
“Is there any specific regulation for crowdfunding in India? Many countries have restricted it,” Justice Suthar observed.
The Court went on to observe that the Securities and Exchange Board of India (SEBI) has issued some regulations for investment in start-up firms and for crowdfunding.
“But SEBI’s regulations, I think are only for Non Government Organisations (NGOs) and not for individuals. This crowdfunding is a new subject… Many countries have not recognised crowdfunding and in India there is no clarity on it. Otherwise it may create a chaos,” the judge added.
