Bazee.com's CEO arrest is unjustified

I disagree with this post by Primary Red defending arrest of CEO of the Bazee.com. He compares the case with that of Napster. However, they are different in many ways than one. One of the normal usage of Napster was directly based on copyright infrigment. Napster was shut-down while Bazee.com's CEO is being arrested for a criminal act.
If Indian Govt. needs to detain Bazee.com's CEO, they can restrict his travel. But arresting and denying bail is really too much!

Somebody rightly pointed out that owner of a mall cannot be held responsible if one if the tentant engages in unauthorized and illegal transaction. If not, by that standard, since Govt. itself is responsible for law and order if any illegal act happens in their jurisdiction police themselves should be arrested.

Sadly, this is really going to hurt India's image.