I don't completely understand the situation but it reads like either an administrative blunder or a flex to try and rig the competition. The context of competing in an international tournament plus requiring documentation of their re-entry to India should have nullified any concerns of overstay. The video cites an automated risk profile, so maybe AI derailed the thing and no human was willing to exercise their contextual knowledge to override a glorified computer program.
The same thing could easily happen with American wrestlers heading overseas.