Dear Pranav,
What is the nature of the business of your company? What is your finished product or service? What is your designation and in what department do you work? To what extent do you need to do physical interaction with your colleagues or customers?
Whether to allow the employees to work from home or not is a company-specific decision. Yes, it has to abide by the rules of lockdown imposed by the local government or municipality. However, exceptions are always there.
Currently, the situation of the job market is very bad. People are being laid off because of the slump in demand. Against this backdrop, it is important to protect one's employment. Therefore, whether to be flexible and protect one's employment or take a rigid stand and forego the employment is an individual's call. We the members of this forum are outsiders, and we cannot comment on your personal decision.
Thanks,
Dinesh Divekar