Has anyone expierienced or heard of a .in/.co.in being shut down or taken away from its owner due to that domain being of adult language or the site containing adult content?

It would seem to me that an adult domain is a bit more risky with the .in registrary, considering this: Live Search: sexy pictures

You get many sexy pictures if you turn the filter off

Live Search options

Yeah, I did know about that.

But doesnt that worry any one... I mean, I actually do own SexyPictures.in and that keyword is censored at MSN.co.in .

My feeling is that problems won't come from the Indian Registry but as you experience, we may get some censorship from companies wanting to do business in India and stay below the radar of radical elements in the country.

Some background: Internet censorship in India - Wikipedia, the free encyclopedia

Some boundaries are definitely going to be pushed in the next year or two:
BBC NEWS | South Asia | Magazine targets the 'Indian lad' (hilarious comments at the end)

Thanks for those links steve.

BTW, slightly offtopic - I tried something interesting recently:

I added a page named "call girls" to 3 city sites I own. Despite being much newer than other pages on the site, they're already far and away the most popular pages.

Certainly supports this data:
Seven Mile: What do People Really Search for at Google?