Restrict such activities to specific areas. Dance bars may be allowed, but they should not be allowed to crop just about anywhere. In fact, the Govt would be benefitted if they are managed only in a certain area.
For instance, pick a place outside Mumbai, away for any town, but accessible by transportation. Create a Las Vegas there.
I know it will harbour several vices - drinking, prostitution, gambling ... but if it is made legal for that special zone, people wouldn't do it in the residential area where you and i live.
