"A panel, formed by the finance ministry in April to suggest measures to deal with virtual currencies (VCs), has recommended the government to take immediate steps to stop use of VCs such as Bitcoins to protect people from potential frauds and curb money laundering, sources told FE. If use of VCs still continues, the government can consider bringing in a legislation to stop transactions via VCs at commercial establishments, curb activities of VC intermediaries, etc, sources told FE."
It is now quite likely that the Indian Govt may ban Bitcoin and close the exchanges in India. Guess we need to wait and watch on what the Govt will do