That would make no sense for Element. That client it not bound to any specific network - you have to specify which matrix server you connect to when using it, so ISPs can't control that without some active probing of all possible endpoints.
Thats the beauty (/s) of Indian IT legislation, it doesn't have to make sense technically. It just needs to make sense to ministers who have no idea how the Internet works. It was funny a decade ago, but now it has become frustrating.