That is a cultural thing, and one of the first things you learn to handle when working tightly together with Indians as an outsider.
I can't remember all the techniques but a simple trick is to ask them to repeat their understanding back to you before they start working on a thing.
But I don't think it's connected to sending "malicious" reports. That seems rather to be to pad their resume and online presence while studying to get an edge in hiring.
You know who also needs a lot of micro-management but doesn’t live in a time zone, is way faster than offshore contractors, scales up and down instantly, has no onboarding period and is (still) cheaper? Opus.