I heard about this case as well and maybe if India will also be a restricted country later, Stake may still allow old players from India to stay and play in Stake by using VPN. If India players contribute decent wager everyday/week/month so far, I think Stake will not let them go easily so maybe Stake will try to make win-win solution.
In general yes Stake will do it but officially no, on the one hand the whale players feel uncomfortable with such a situation because if there is a problem with their account when requesting a withdrawal then Stake team can use the excuse of country restrictions to reject all complaints, I've heard stories like this in other casinos. I wouldn't be surprised if those whale players use new accounts from other countries or buy old accounts.