The high court in the Indian capital of Delhi on Thursday rejected a petition that sought to repeal Section 377, which criminalises consensual sexual relations between adults of the same sex, the BBC reported.
Filed by the Naz Foundation, a HIV and AIDS organisation, it argued that it is wrong for homosexual acts to be a punishable offence in 21st century India and alleged that the police use the law to harass gays.
It also cited the law as being a hurdle in the AIDS awareness campaigns run by the various AIDS welfare agencies as the laws restricts many men from coming forward to receive information on how to protect themselves from the disease.
The court however ruled that the "validity of a law" cannot be challenged by anyone who is "not affected by it." Legal experts are however debating the ruling that petitions against the law cannot be brought by anyone who is "not affected by it" while some argue that public interest petitions should be filed by affected people rather than by organisations representing them.
Lawyers for the government also argued that homosexuality cannot be legalised in India because society strongly disapproves of it.
"Indian society, by and large, disapproves of homosexuality and justifies it being treated as a criminal offence even when adults indulge in private," said a government lawyer.
The court heard their argument that the abolition of the law dealing with what they termed as "unnatural sex acts" could open the "floodgates of delinquent behaviour."
"While the right to respect for private and family life is undisputed, interference by public authority in the interest of public safety and protection of health and morals is equally permissible.
"This is precisely what the law does," said the government affidavit.