1) that is the fees that using fiat requires. in other words that is the expensive banking system's fault. and it is nearly the same amount in other exchanges even those accepting USD.
2) you simply lose all your money. you can file a complaint with law enforcement and run after them but history proves that when the exchanges scam people, they run away for good. so far many exchanges have done it: Mt-Gox, Cryptsy, Bter.com, Bittrex,...
3) there is an Indian board here:
https://bitcointalk.org/index.php?board=89.0 which you can visit and ask your country-mates.
