'Udta Punjab' is not "banned" anywhere. CBFC asked them to make a huge number of cuts including those you mention in order to get an 'A' certificate. The producers took them to court and have so far only conceded one cut: depicting the rock star protagonist high and pissing on the audience during a concert. The Bombay High Court has slammed the CBFC (aka 'censor' board) for overreaching reminding them that censorship is not part of their mandate. The official verdict is on Monday but so far it looks like the movie will be passed with no other cuts. Also, there is an appellate tribunal in the CBFC which reverses its decisions on specific cuts for the most part but they weren't invoked in this case because of the shortage of time.

So yes, the CBFC did probably do what they did under political pressure but the politicians don't control everything in the end.