[toraric]

They have not specified any reason for closing Flyte though.

[Edit] Found post on NextBigWhat where they have explained it.

    “We have realized that the music downloads business in India will not reach scale unless several problem areas such as music piracy and easy micro-payments etc are solved in great depth. Which is why, we feel that at present, it makes sense to take a step back from Flyte MP3s and revisit the digital music market opportunity at a later stage.”