the only way bitcoin really helped int his case, was because it can used to make international transfers. one could as well used cash if it were inside India.

i think it is reasonable for the govt. to know who is using bitcoins after all. just because they know who is using it, doesn't mean everyone has done something wrong. i really don't see what is wrong in using bitcoins if not used for illegal purposes. of course, paying taxes is something everyone should take care of.