If the government are not happy about it they should pull the funding.
It’s not as simple as that-institutions like St.Stephens come under the category of ‘Minority’ institutions, which have constitutional protections.But those were to uplift large sections of the poor among such communities.The vast majority of folks studying at St.Stephens are filthy rich.IOW, you dont need government funding for an institution which is attended by the richest kids in the country.
In addition to creating illwill with other religious groups, these moves create schisms among Christians.