This is usually the case with onerous rules and regulations. Actual criminals have the means and motivation to work around any law. There will be a percentage of dumb/small criminals who will get caught, and the time and effort spent in catching them might not be worth it in the end. As usual, the common man who is honest and wants to follow rules will have to jump through hoops and hardships.
This isn't unique to India though.
This doesn't mean there shouldn't be laws and rules. Just that creating and enforcing the right level of rules and regulations isn't as straightforward as it sounds. Theft is theft, whether it is $10 or a Billion, but it would make sense to go after the dude who stole a Billion first, rather than the hungry dude who stole $10 for food. But the thief who stole a Billion has the smarts, motivation and means necessary to beat any laws
The biggest thief though is the government, as per the rate of inflation of their currency, due to much money they print every year, much of which is for their wasteful spending. What little value is left, they tax much of it away. This is why there is a righteous motivation to exit the government's money system.
This isn't unique to India though.
This doesn't mean there shouldn't be laws and rules. Just that creating and enforcing the right level of rules and regulations isn't as straightforward as it sounds. Theft is theft, whether it is $10 or a Billion, but it would make sense to go after the dude who stole a Billion first, rather than the hungry dude who stole $10 for food. But the thief who stole a Billion has the smarts, motivation and means necessary to beat any laws