Just to clear up some air here ...
The government, as in the Central or State governing bodies have not blocked any sites, nor have they passed any orders for the same.
The issue involves a company, Copyright Labs (http://www.copyrightlabs.in/index.php) which through the Madras High Court got a John Doe order to get ISPs to block access to certain sites to 'ensure' that an upcoming movie is not pirated.
What is worrying w.r.t. the government is summed up quite aptly here: https://twitter.com/#!/pranesh_prakash/status/20306526313290...