The charges are not against using Bitcoin, but ML.
From my understanding, Mahin only bought from people in India and sold to them from that stock which should absolve him of this.
As the document states, he has not yet been arrested.
Not ML, forex. to quote:
We are gathering the data of the transactions, name of the people who have transacted in the virtual currency from Guptas server that is hired in the US. At present, we believe that this is a violation of foreign exchange regulations of the country.
I think they are implying that, because the server is in the US, this can be considered under FEMA.