Indian law takes infinite years to resolve a case. 1 year to actually frame charges, 10 years in lower court and 10 years in upper courts.
Is it legal to discriminate against employees who've been accused but not convicted of a crime? Well, no.
Is anything else Uber is doing in India legal? No.
So… if they're breaking the law anyway, plus making sure to hide everything they do, including basic contact information, from anyone who might need to contact the company (to the extent that the government themselves had to hire a driver just to get in touch with someone), I feel like denying employment to someone convicted of a violent sexual assault would probably be the least unethical thing going on with Uber in India.
'Is it better to include into the set of Uber drivers, 10 non-rapists and 1 rapists or to exclude 10 non-rapists and 1 rapists.'
Probably the latter.
'Is it better to include, into the set of NYC residents, 5 million non-rapists and 3 rapists than to exclude 5 million non-rapists and 3 rapists.'
Probably the former.
Unfortunately there really is no middle ground. You can't point to an event and say that you're __% certain that the accusation is true. So again it boils down to whether you base the decision off of accusations or convictions alone.
As someone stated elsewhere it's not just an ethical decision, either. Economics should play at least a minor role in the decision-making process.
You're exactly right. So the question becomes, "Is it better to disqualify applicants based on accusation alone, knowing that you'll disqualify some number of innocent people, or is it better to screen on convictions alone, knowing that you could possibly not screen out some guilty folks you otherwise would?"