This surge in popularity caught the government's attention, leading to a significant crackdown. In July 2025, the Ministry of Information and Broadcasting (MIB) banned 25 OTT platforms, including major players like , ALTBalaji (ALTT) , and Desiflix , for streaming obscene and pornographic content. This move sent shockwaves through the industry. A writer and director for these platforms, Rafat Abbas Ali (also known as Raifee), said the ban "yanked the ground out from under his feet," as he lost his primary source of work. This ban underscores that in India, the adult content industry is operating in a legal gray area, making its landscape unpredictable.

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