the law is vague and self contradictory...
in one place it only bans the "use" of thuraya and all sat phones in Indian waters.
on another place it completely bans entering indian waters with any type of satellite phone including inmarsat which are fixed installations on almost all ships these days.
Don't worry, if the law is vague or contradictory, the lawyers representing these people will argue that in court. We don't have to argue about it on PDF. Remember, they are not convicted, they are only accused. They will be given a free and fair trial where they (and their lawyers) can explain themselves, or challenge the law. You can be sure that they will come up with all these arguments and more.
Your earlier contention that it only applies to Indian land is not true. The director general of shipping (representing the ministry of shipping) has made it amply clear to all shipping companies that the use of Thuraya phones is illegal in Indian waters, in its Order No. 02 of 2012:
https://docs.google.com/viewer?a=v&q=cache:0Ug2ufLrrJkJ:www.dgshipping.com/dgship/final/notices/dgsorder2_2012.doc+&hl=en&pid=bl&srcid=ADGEESg9NYMZDwbkumxO8tOp0abRIhZHY_mLKIhzhJworQMyY7-vfipfW5ogCfZqBoTiOPwdw9KCNU7f_ZEqBnY1-NDVAYj28KilDqKCdYMdt1Az8LUh7mW8OPUDorH-FN1GQCrJXaR-&sig=AHIEtbS6eNvqR-ram1ZXE_dwCWBJ4VnIlQ
Subject:
Usage of Thuraya, Irridum and other such Satellite Communication in Indian Waters.
The use of Thuraya, Irridum and other such Satellite phone is banned in India under Sec 6 of Indian Wireless Act and Sec 20 of Indian Telegraph Act. It is intimated to all Shipping companies / Shipping agents that use of Thuraya, Irridum and other such Satellite is banned in Indian waters and seafarers should not us the same.
http://www.iss-shipping.com/Microsites/Document%20Library/Usage%20of%20Thuraya,%20Irridium%20and%20other%20Satellite%20Communication%20in%20Indian%20Waters.pdf
The law is pretty clear.