I have followed the news for quite a while now and I know for a fact that even if the Supreme Court have invalidated the memorandums being given by the RBI they still are pushing that it is not right which is quite surprising as their own Supreme Court is being push around by their own central bank. This is some kind of power struggle within their own government which makes things unclear for a lot of people we don't really know who has the real power and even if they have decided something someone will opposed on it which just makes the crypto news media more happy.
As such there is no animosity between the Supreme Court and the government. The 2018 directive from the RBI was invalidated, because it was not without any legal basis. The supreme court made it clear that if the RBI want to ban certain types of transactions, then the government first needs to come up with the legislation regulating the cryptocurrency. At that time, the government had no plans for such a law and that's the reason why they couldn't act further.
However in 2019, the Finance secretary (Subhash Chandra Garg) came up with a draconian law, which called for prison terms of up to 10 years for anyone dealing in cryptocurrency. The bill was not implemented then, as Mr. Garg was kicked out within a few months. Anyway, the government seems quite adamant to pass this draconian legislation this time around. And there are limitations from the part of Supreme Court, if the law is passed by both houses of the parliament with a simple majority.
