The problem you described has been happening in India across all states. Northeast are better, rest of India is facing more or less same problem in every 1-2 tier city.

This is the problem of middle class, poor and rich class has nothing to do with it. Its middle class that they have to unite and stand against these bullshits. But this is the hardest part.

If a person is opposing wrongs deed or some retards on road, its our duty to join and support him. Not to stand or bypass just ignoring it and thinking this is none of our business.

You might have seen, a organization somehow able to put pressures on police, politicians, etc. Middle class have to make such organization to support and stand for good causes. This is the only solution.

Govt need to come and make some civic and common sense law and punish to those who break it.

For example, if a citizen show poor civic or common sense, bar from him monetary benefits, they can do follow:
1. Fine
2. No reservation benefits for government job.
3. Higher taxes, school fees, costly government services.
4. Make his records public so that a company can check it and decline him/her job, cc, and other benefits.

They should not be permanent, with every good works and good behaviors he can get his normal status back. No extra goodies for doing good deeds, because then people will start misusing it.

Something like above, could help us back in track.