Yes.
Both governments banned the book because it criticized Islam. The Iranian government also put a death sentence on Rushdie’s head.


Background
Salman Rushdie’s book The Satanic Verses, stirred controversy in both countries which have sizable Islamic populations.

The two main characters in the book are Indian and undergo a religious transformation, when they are faced with death. The characters explore a wide range of themes including good and evil, life and death and religious identity. Rushdie criticizes Islam directly and indirectly throughout the book, as these characters go through this spiritual journey.

India was among the first countries to ban the book. It was also banned by Pakistan, Bangladesh and Sri Lanka.

Shortly after the book was released the Iranian government called for Rushdie’s execution. Iran is a
theocracy. Ayatollah Ruhollah Khomeini, an Islamic religious and political leader, felt that the book was blasphemous to Muhammad and the Islamic faith. Because other threats of violence and death had been carried out against those the Iranian government disagreed with, Rushdie went into hiding.

In 1990, he denounced the anti-Muslim sentiments in the book. Iran’s next religious leader, Ayatollah Ali Khameini, said the death order remained unchanged. For a decade Rushdie had to carefully plan all of his travel and was constantly accompanied by bodyguards. People associated with the author, such as personal translators and book publishers, faced violence and in some cases were killed. A few bookstores in England that carried the novel were firebombed. British Airways refused to let him fly in their airplanes because of the potential violence.

In 1998, the Iranian government issued a statement saying that they had no intention of enforcing the death order on Rushdie and those associated with him. Khameini reaffirmed the death sentence in 2005 but there is some dispute over whether it is actually in effect.

Although the book is still controversial, Rushdie is not clouded by the same threats of violence. Rushdie lives in the United States and most recently served as the chairman of the 2011 PEN World Voices Festival of International Literature. PEN is international literary and human rights organization.



Rushdie 'hurt' by India ban
BBC News, October 10, 1998

How One book ignited a culture war
The Guardian, January 11, 2009

On This Day: 1990: Iranian leader upholds Rushdie fatwa
BBC News

Fatwa on Rushdie Turns 20, Still in Force
New York Times. February 14, 2009

Ayatollah revives the death fatwa on Salman Rushdie
The Times of London, January 20, 2005

Is Rushdie still under fatwa?
Times of India, January 20, 2005

Freedom In the World report 2011, Iran
Freedom House

Freedom In the World report 2011, India
Freedom House