Of course it can be question legally specially that India is a democratic country. And isn't it has already a precedent? When RBI issued their controversial statement like a year or two again and it was challenge but crypto enthusiast to IDC (Supreme Court) and it was over ruled. So this will continue in the years to come and many crypto business will likely questioned it again if crypto are going to be ban in India.

I even created a thread, India: Timeline on Crypto's fight against RBI crypto ban.