In other parts of the world, an airline's economic authority to operate, is revoked by the country's for such inappropriate conduct of business. Further those in management responsible for such conditions are banned from ever being part of management of any carrier be it current or future.
At this point the government can be of assistance by allowing those who desire to move on. The government can waive the required letters of release from KF so that those who wish, can on to another carrier in India.
But again, with the new scandal in AI about pilots who fail their check rides in the 737 with AIX move on to the 777 in AI. That said the DGCA and Central Government will continue to be part of the problem rather than part of the reasonable solution.
Good luck to those who remained with KF and hopefully Karma will play a roll for VJ.