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.
I think we should leave stake to decide that and the Indian customers as well. It is not as easy as you think, though Stake may pretend as if there are no India customers with them anymore and the Indian customers pretend the same. But the VPN might later create issues. And will Stake be truthful to it? What has put many people in trouble is this VPN of a thing, and even if Stake wants India clients stay with them, what if the rampant use of VPN misrepresents multiple accounts? I would rather be wise if I were an India, staying out of trouble like this is important, because everything will still fall back on their head.
If people do it, they accept these risks.
And they shouldn't have any bad feelings if something happens.