The law commission of India, which has been studying the feasibility of sports gambling, has clubbed virtual currency with other legally accepted modes of payments.
Are you referring to this
news? If so, then you are mistaken. It is clearly stated there that Indian regulators might treat cryptocurrency as a commodity, and not as an alternative mode of payment. Either way, I think them looking at the bright side of what bitcoin and other cryptos offer for once is better rather than seeing them retaliating with a countrywide ban.