In a democratic country, if you want to change policy you need to get elected. If you are a civil servant, you can advise but if the elected decision makers decide otherwise you either execute the orders or you resign. Allowing someone who refused to execute legal orders and who publicly expressed dissent to be transferred in this situation is actually recognition that healthy debate is good and speaking out in a democracy should not be punished, particular when the dissenter is an otherwise extremely competent individual working in the best interests of the country. It's certainly not something an authoritarian would do. However, elections have consequences. In the elections in question, twice, a majority of the supposedly oppressed group, Indian Muslims, has voted for the current government. Unless of course you believe that female Muslims or those male Muslims who want to live in the 21st century shouldn't count.
The Supreme Court determined that as a general matter communications should not be restricted and that any ordinance to restrict communications needed to be on the basis of a determination that restrictions were needed that was reaffirmed periodically. The Supreme Court could have required the government to restore mobile access to Kashmir as of a specific date and the government would have been compelled to do so. They didn't, because the Supreme Court of India like most of the silent majority in India understands that a citizen's rights only exist so long as the State itself exists. All rights can be suspended in an emergency. A bill of rights is not a suicide pact.
The restrictions are not a restriction on any individual or group. They are a restriction on a geographic area. The majority of state citizens of Kashmir, certainly a majority of the residents and descendants of residents of Kashmir in the 1970s, today resides outside Kashmir. Most left due to terrorism. There are no restrictions on them, no matter their religion or political beliefs. Remember, there are areas in the US where no radio transmissions are allowed[1]. If you reside in Kashmir today, you are free to travel outside the state. If you do travel outside, you can use your mobile phone to your heart's content. If you aren't a resident of Kashmir and you travel to Kashmir, no matter your religion, ethnicity or other grouping, you can't use a mobile phone while there.
[1] https://en.wikipedia.org/wiki/United_States_National_Radio_Q...