India is not banning cars or taxis on the road. They are saying that Uber shall not operate until they get permits and comply with the law.
If the law requires you to go through a background check and obtain a license to buy a gun; but you don't get a license, you buy a gun and then shoot someone. Clearly, you would be liable for the crime.
If I buy a gun and shoot you, the government will ban gun manufacturers?
If I buy a baseball bat and smash your skull, the govt will ban all sports?
If I buy a potato and stick it in your throat and you die, the govt will ban agriculture?
If I offer you a ride (free or for a fee) and then decide to rape you and bury you in a forest, the govt will ban auto makers?
How does that make sense?