My country's (India) bureaucracy is legendary. In this case, I suspect there was something that triggered the ban and now that reason would've got forgotten.
The officialdom has great inertia to do anything. No one wants to stick their head out and revoke the ban. They never get punished/held accountable for inaction, so why risk with action? They will wait till the courts order them to do, so that they will never get blamed.