What about those in India who traded using localbitcoins.com? Is there any possibility that they too can get into legal trouble or affected in some other way?
I don't see anyone getting into trouble, as long as the money which you used to purchase bitcoins from them was not already stained.
Of course, people who bought using these sites might have the ED Scanner go over them, but again, nothing to worry unless you have undeclared assets or anything otherwise illegal.
Indians can still do a wire transfer to MTGox and purchase bitcoins.
I would not recommend mtgox, which is known about its delays with withdrawals, and has higher prices than other exchanges. Check out bitstamp, btc-e etc.
Of course, people who bought using these sites might have the ED Scanner go over them, but again, nothing to worry unless you have undeclared assets or anything otherwise illegal.
Indians can still do a wire transfer to MTGox and purchase bitcoins.