It is expected that Bitcoin may be legal in India as Indian Govt. imposed TAX on transaction of cryptocurrency.
I would be the happiest person on earth if it happens. I too came across such news from some national news papers bureaucrats these are not certain till date. They are just speculating. It is true that Indian finance ministry has formed a committee to debate on crypto currency and to draft a recommendation to be presented in front of the parliamentary committee.
However, Indian government is run by old bureaucrats who has limited brain power to understand the power of crypto currency. So I have a very little expectations from them. But if India decides to tax on bitcoin and legalize it, it will bring a huge positive impact on overall Cryptocurrency market.