Gov will shut them down in a couple of days, arrest owner and that'll be it (like they did with BuySellBitCo.in and others)
That is assuming they didn't "lobby" someone, prior to opening their operations, don't have friends / relatives within the government, didn't manage to talk some sense into the key decision-makers, and didn't convince someone in the position of power to buy some bitcoins.
It's India, not the US. Things are done a bit differently there.