If you are an Indian and have been screwed by PayPal, you do not have to stick with them. There are several other ways to get your money from foreign companies without having to be a victim of their stupid policies and lack of rules in India.
To find out a different solution, you can visit this Wikipedia page which lists provides a huge list of service providers who are PayPal alternatives and also allow you to accept online payments.
Though not all of them may work in India, these solutions are definitely 100 times better than PayPal. If you want to add to this list please feel free to comment on this post.