Looks like multiple excuses were given. Not just a perceived insult by Born-Agains. But this event is not in isolation.
Violent activities against Christians have been on the rise as evidenced by this 1999 article.
Anti-Christian Violence on the Rise in India
Plus this from the Bajrang Dal "official website" indicates a group of people eagerly anticipating "insults"
Bajrang Dal activists take up arms, June 13th, 2001
...Besides firearms training, Bajrang Dal activists are taught martial arts, including judo and karate.
``They are also taught how to use a knife to defend oneself from being knifed,'' said the convener.
These camps are being held with an eye on Ayodhya, contend the convenors. ``We have to create the same euphoria which existed when the Babri Masjid was demolished,'' said Hari Dixit, a VHP leader.
... Meanwhile, the Bajrang Dal has chalked out an elaborate training programme for Hindu youth. In August, about 50,000 Bajrang Dal workers, drawn from all over the state, will be taught trishul warfare.
I don't believe people who profess to be born-again use martial training as a part of their doctrine. Neither do they wish for a return to an attitude which was prevalent before a violent event(Babri Masjid)
In short, I do not accept your example of an insult. Here is a link to what I believe is the born-again group being discussed.
Here is a portion of what they believe.
If Jesus is to be considered relevant in today's world, he has to fulfill at least 3 criteria:
1. His teachings should not be forced upon anybody,
2. His character should be morally exemplary,
3. He has to somehow be above the changes of "time".
Jesus never compelled anybody to follow him, nor did his true followers threaten anybody into Christianity. If He had,
then he would have lost the credibility to invite us to accept him. If will is disregarded, then a loving, meaningful relationship becomes impossible.
South Canara is in the south.
I had visited Raigad (in the neighboring state) and met folks from that area, and yes, this was caused by the New Life Fellowship being more than silly with their pamphlets
It's silly to publish pamphlets sayings someone's deities are demons -- that doesn't help convert folks...
I don't know the details of who printed this, whether they acknowledged it as over-zealousness or not, but my point was that it was printed, it was a slap and it only pushed back the message of the Gospel.