Regardless of the merits of this law, your take is very simplistic. All laws are trade-offs and they achieve their purposes imperfectly and with side effects. Not to mention the administration of the law (the justice system) is far from perfect.

Just to give a perhaps contrived example based on what the GP said. We can imagine that companies start worrying about the caste of their employees (or just if they're indians) when they otherwise wouldn't, and constrain their actions lest they be exposed to higher legal jeopardy down the line.