Author Topic: MP High Court Summons RBI, Finance Ministry and eBay for Sale of Coins and Notes  (Read 4470 times)

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Offline Bimat

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The Indore bench of Madhya Pradesh High Court has summoned RBI, Finance Ministry and three Indian online shopping sites (OLX, Quikr and eBay India) over the sale of (Republic) India coins and banknotes. Apparently, the petitioner believes that it's not permitted to sell coins or banknotes at a premium on websites. The high court has given a time of three weeks to RBI/FM/Companies to respond.

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline asm

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I have been given to understand that an RTI querry had revealed that it is illegal to trade in currency at either a discount or a premium.

Mr Rajgor has complicated matters by writing to the PMO, PM and the RBI seeking a license to trade in fancy number / birthday notes etc at a premium.

I do not think it would be legal any where in the world to trade in circulation notes and coins at a premium or discount.

Amit
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Online dheer

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Interesting.

It would just mean that Coins cannot be sold, but a package can be sold. i.e. If I put a coin in a package then is there something stopping me from doing?

Similarly if I arrange notes along with some other theme, would it still be illegal?
http://coinsofrepublicindia.blogspot.in
A guide on Republic India Coins & Currencies

Offline Bimat

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AFAIK, the petition only seeks ban on selling of commemorative/regular coins issued for face value and b'day banknotes etc at a premium. There's no word on proof sets, unc sets, mint packaged single coins etc. So I think you are right about coins, but it would be hard to sell any kind of current banknotes as RBI doesn't sell 'special banknotes' like many other banks.

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Bimat

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I have been given to understand that an RTI querry had revealed that it is illegal to trade in currency at either a discount or a premium.

Mr Rajgor has complicated matters by writing to the PMO, PM and the RBI seeking a license to trade in fancy number / birthday notes etc at a premium.

I do not think it would be legal any where in the world to trade in circulation notes and coins at a premium or discount.

Amit

Yes, I saw that letter he posted on Facebook. I have been told that hundreds of collectors, dealers and coin groups have already written to PMO (I didn't) and they are expecting positive results. But it would be hard for PMO/Finance Ministry to allow selling of  current coins or banknotes at a premium and provide a license for the same; it's a dangerous thing to do as it can be easily misused.

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline asm

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Selling the current circulating coins / notes at a premium is akin to black marketing.........No sane government or central bank can permit it. In fact, for all I know, Rajgor has really put is foot on  beehive.................

I believe that this will hit all auction houses too............the first casualty I think is the CNG Auction in August in Ahmedabad. A look at the listing shows that it stops at Princely states. All BI & RI have apparently been removed.......

Amit
"It Is Better To Light A Candle Than To Curse The Darkness"

Offline Bimat

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Why ban BI coins and notes? They are not legal tender now... ???

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline asm

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Why ban BI coins and notes? They are not legal tender now... ???
I do not think there will be a ban on those .......may be Shatrughan is being a bit extra safe.......... he already has an issue of last years auction hanging on his head.

Amit
"It Is Better To Light A Candle Than To Curse The Darkness"

Offline Bimat

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Woha, eBay India has sent message to all its registered members selling stuff on site saying that eBay is not responsible for selling anything that it is prohibited by law. The responsibility lies with the seller and the eBay user agreement specifically mentions so. Sale of legal tender coins, stamps and banknotes is prohibited and the seller shall ensure that there's no violation of the laws. Those doing so may face actions like suspension of account, criminal/civil legal action.

In short, seller shall take care of himself, eBay is not going to help him!

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline cmerc

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If this, for whatever incredible reason, is upheld, then the first coin I will get is 1835 double mohur, for Rs. 30  >:D

 
Defending this hobby against a disapproving family since 1998.

Offline Pabitra

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Is the notice from eBay India or eBay.com?

Does it mean that even packing and postage charges are to be borne by sender?

I think on eBay India, major activity is fancy number notes and not circulation coins.

Offline asm

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Could be separately invoiced I think.......... A loop hole to charge a premium.

AMit
"It Is Better To Light A Candle Than To Curse The Darkness"

Offline Bimat

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Is the notice from eBay India or eBay.com?

eBay India.

Apparently, the petitioner wants to ban sale of legal tender coins not only on online sites like eBay but also in coin shows held in all parts of India. The whole drama started last week when Indore Coin Fair was in progress I think. Rajgor's letter to PMO may add fuel to it.

If this, for whatever incredible reason, is upheld, then the first coin I will get is 1835 double mohur, for Rs. 30  >:D

The petition only states Republic India coins, so we are not so lucky... :'(

I also wonder if the court will allow selling legal tender coins from other countries! ;)

Aditya
Caution. The low-hanging fruits are still there maybe for a reason.

Offline Enlil

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Thats a bit pathetic banning the selling of current circulating coins and banknotes. Good luck stopping people though.

Offline augsburger

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Just put a coin up for the actual cost of the coin, then bid on how much postage and packaging you'd pay.