No, the process is designed to limit fraud and prevent fly-by-night companies from squatting resources for the real businesses.

One can argue that the government must place trust in citizens, but then in India time and again we see even reasonably sized businesses defaulting on loans, and squatting land resources. You also need a lot of regulation and inspection, to ensure people are not drinking fertilizers with Cola. Such situations are actually common than one thinks.

The problem here really isn't law or law maker. The public in India in general is corrupt, and even honest sounding people become corrupt when offered an opportunity. There's only that much you can do when there's that much lies and corruption, you can have laws to limit them, but then these kinds of side effects show up.