People might ask you first if its ok to "telecommute" from India, before applying.
I was not aware "asking" that may put them into "egregiously broken" category :)
If they get your application, and it says "I am from India and can't leave", then by their own rules that's broken, but there's no penalty for asking stupid questions.
How you react, as you come to realize that the question you are asking is a stupid one, probably says something relevant about a startup founder.