Playing Rummy Online for stakes is definitely legal in India. The Supreme Court recently dismissed a petition seeking the legality of playing Rummy online. This means that it is, in fact, legal. Although, sometimes it has come to light that local police sometimes harass offline Rummy club owners stating what they are doing is illegal. But the claims are baseless as playing Rummy for stakes does not amount to gambling in India. And often the Rummy clubs have filed cases against the police and won.
So, there is no need to panic at all. If you want to play Rummy online, you can carry on without any fears or doubts. What you are doing is perfectly legal under the laws of the land.
This is because gaming legislations all over the country, except that of Assam, Kerala, Telangana, Nagaland, Odisha, and Sikkim provide an exemption for ‘Games of skill’ (games that require skill to play and are not only depended on luck) from being criminalized. In India, Rummy is deemed as a game of skill and not a gambling game. This came to be after the Supreme Court of India in 1967 passed a verdict stating that playing Rummy requires a considerable amount of skill as the players need to remember the cards and is not dependent on luck.
In another judgment in 1996, the Supreme Court also stated that (i) competitions where success depends on substantial degree of skill are not "gambling" and (ii) despite there being an element of chance, if a game is preponderantly a game of skill it may be called a game of "mere skill".
So, it became perfectly legal for players to play Rummy for stakes as there is an exemption in the law. And thus playing Rummy online is legal which can be further confirmed after the Supreme Court’s latest verdict on this matter. So, as far as now online Rummy is unregulated and legal. But the Supreme Court has directed state governments to come up with a regulatory framework of their own. In fact, Nagaland has already passed an order to regulate and monitor online Rummy websites. But this in no way will change the legality of playing Rummy but will only bring in some rules regarding the operation of these sites which you do not have to worry about at all.
Rummy has a great many fans all around the world. It is as the Supreme Court said. It requires a lot of skill to win and this is what makes it one of the most popular games around the world. So whenever you feel like playing a game of Rummy, just go online and have a great time.