This is pretty normal in India unfortunately. Crony capitalism is the dominant business engine in the country, so pretty much any significant business, esp in regulated sectors like govt mandated services(which is the bulk of eMudhra's operations) is impossible to set up without significant bribes being paid.

As a consequence, these businesses are very well protected from normal market forces and are pretty much above the law. Had this incident not been an international one, they had a very good chance of getting away with it, and the people reporting this would have landed in jail.