I am from India too. Currently no authority governs bitcoin so surely it isn't illegal in this way. Then comes the question of our bank. RBI stated that its not legal but didn't expressly claimed it as illegal which means you can't be fined or arrested or be held guilty for holding or raising bitcoins. But in India we have bigger problems. Even if you create another coin by raising an ICO how in this world you will convert such amount into INR. Moreover its almost unexplainable that you have raised such funds so it will be treated as your income so you have to pay your income tax onto it.