If they could jail people from using crypto, they could aswell jail people from using any other asset they don't like whether the asset is good or bad.
You have no idea about the fascist government that is ruling India, they will jail anyone that they seem to be challenging their views, if you look at the current situation you have no idea how many news reporters are in jail as well as comedians who made jokes against them, only a fascist government can sent people to jail without committing any crime and that is what they are doing.