On what bases can Government Officials raid Bitcoin traders in India ?

On what bases can Government Officials raid Bitcoin traders in India ?

On what bases can Government Officials raid Bitcoin traders in India ? Is Bitcoin trading or trading of Bitcoin Asic miners Illegal in India ?

As news came ED raids Gujarat Bitcoin traders , i was wondering , people already know before buying or trading that its not regulated by government officials and so how can government raid traders ?

In name of security are they trying to create rules so that they themselves can regulate this Bitcoin trading or trying to stop it as its competitor currency to governments official currencies ? After all Bitcoins started just because people started losing faith in governments and banks ! So just wanted to know on what bases can governments ban or disapprove Bitcoin Trading ?

Thanks and hoping someone would solve my mystery !

By the way if you have answer to this question or any wild guess then please answer it here by going to below link :-

http://in.answers.yahoo.com/question/index;_ylt=AnMgFIWmUCOm_YVYOF0Y_Tp9Zn1G;_ylv=3?qid=20140105064717AAVGE5Y

or

http://uk.answers.yahoo.com/question/index?qid=20140105063152AARZDPW