The Indian government (and Indian courts) is infamous for these random harebrained stunts. In the past, it has banned archive.org [1], continues to block the French ISP free.fr, etc. VLC was likely banned because people use it to watch pirated films (the same reason free.fr continues to be banned [2]). And it's plain f*cking stupid to just ban videolan.org, because it can be downloaded from numerous other websites [3], not to mention the repositories of every major Linux distribution.
[1] http://blog.archive.org/2017/08/09/statement-and-questions-r...
[2] https://www.reddit.com/r/india/comments/74lqug/why_is_free_a...
[3] https://duckduckgo.com/?q=download+vlc+-site:videolan.org