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Originally Posted by shalym
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No. There is indeed a law against "deliberately and maliciously" outraging the religious feelings (and for good reasons, which aren't really related to scholarly writing, but a history of communal troubles). It is the section 295A of IPC. But whether or not something is "deliberately and maliciously" outraging can probably only be decided by the court. In this case Penguin decided to settle it outside the court (after a prolonged battle admittedly). So, whether they would have been charged with that or not remains unknown.
Now, they either sensed that the case was not going in their favor, or something else happened behind the doors. We'd never know because their official statement was very vague.
So, there we are! Not knowing who to blame. Although they are conveniently blaming the law