It would be stupid on the Indian government's part if they did an action against Bitcoin and not the criminals themselves, if they made this the reason of their plans to ban cryptocurrency they would look like a dumb government. If you ask anyone if Bitcoin or cryptocurrencies will disappear will this make all the crimes that is happening now will also disappear? Of course not crimes existed before and will still exist now with or without cryptocurrencies, banning the mode of payment won't mean a thing to them as they will have other ways of getting the money.
I have to agree with this, to see this as a reason against Bitcoin is not an accurate justification because bitcoin is not the one who makes illegal activities by itself, it's just being used by the criminals and it's the same with fiat. I know this kind of news is not new at all, and we will probably see more but for me, it's still not enough reason to ban bitcoin (if they are thinking about it).
Also, I just want to mention, every time there's this kind of news related to crypto, they always include bitcoin or crypto besides the illegal activities that tarnish the name of bitcoin.