These operations have to be sponsored by the state at this scale. At the bare minimum they're at least looking the other way. My grandparents are the targets for this kind of scam, and when they call their bank they get an Indian customer service rep to discuss the situation with. Absolutely disgusting that the situation has been tolerated for so long.
Its more like 1. They don't care 2. Those who care, don't have time to work on problems of Non-Citizens when the citizens are suffering too
India is a country of almost 1.4 Billion people. That is 1 Europe + 1 North America + around 200 Million people more (figures from google search, may not be accurate)
Indian law enforcement is archaic, understaffed, and riddled with corruption. They prefer to sit on their asses all day and collect paychecks rather than working. For the select few that actually work, they have all the local issues to deal with that comes with a population of that size. They simply do not have the time to work on things that are affecting someone on the other side of the planet.
And tbh I don't blame them for putting citizen's problems over non-citizens. Thats literally what every country would do.