It all stems from the (supposedly optional) requirement that a Masters' level student get a paper published. Sure, it is somewhat justified - seeing as how they are partially research students themselves - but the absence of a honest and thorough peer-review kinda puts paid to the justification. As a result, most students end up opting for these pay-to-publish scams (sometimes even knowingly) and they continue to thrive.
The aim of the whole exercise was to expose these conferences for what they really are - money-making scams that prey upon the students' desperation. What hurts is the fact that the students (probably) knew about it but they were so desperate to get a publication, they couldn't care less. Such is the state of the education system in India. :(