Where did you get that from? Completely untrue.
The new IT rules mandate the appointment of persons in certain executive roles, and companies, including Twitter, have the freedom to choose whomsoever they please, as long as he/she is an Indian resident - they don't have to be "government approved"
Twitter didn't want to have a responsible officer in India. The managing director of Twitter India said he was only responsible for "marketing" and did not have control over the day-to-day functioning of the company.
> controversial hash tag related to farmer protests
It wasn't just a controversial hashtag. A farmer sped a tractor into a barricade causing the tractor to overturn and was killed. The whole thing was clearly caught on camera[1][2]. Within minutes there were blatantly false tweets flying around saying that police had fired on the farmers and there was a genocide in progress (with an associated hashtag). Twitter refused to take down such blatantly false and deliberately incendiary tweets.
Edit:
1. https://economictimes.indiatimes.com/news/politics-and-natio...