This gets bitcoin attention in India. But it means that there is still a question mark about regulations. We saw a similar situation in the US with the fincen advisory and then all that regulatory pressure. It hasn't been a good thing so far.
I would assume that they found no one to procecute as yet. Hence the delay in regulating.
Hopefully this news will allow for many more people to get onboard and then the govt may see a revenue stream and intervene.