I would like to take a somewhat different perspective on this issue. I don't mean to imply that Indians are generally less hygiene conscious -- far from it -- though it is true that we have double standards as far as private and public cleanliness issues go. A person who would not dream of leaving even a shred of paper on his floor in his own house, will willingly sweep all the detritus out on the road and sometimes in front of his neighbour's house, or throw garbage on the road without thinking twice. Homes in India are regularly swept and swabbed daily (sometimes twice!), bathrooms are cleaned with gallons of water being poured all over. Most Indians in fact have a holier than thou approach towards these issues, particularly with regard to the West. We use water, they use toilet paper, how clean is that? -- is the common refrain. (Some Indians, after a stint in the West take to the Western way, considering it to be somewhat less messy. I even know a colleague who claims they have toilet trained their child to use water in Indian toilets and paper in Western toilet -- I think I am missing something here...).
But to return to my point. While the Bhanot statement was frankly stupid, there is an element of truth in it. Most Indian bathrooms, except the more modern ones, and despite the use of liberal quantities of water, would not appear clean to a Western eye. And the reason is precisely the use of water -- or rather the difference between a dry and a wet bathroom. Western bathrooms have a separate area (usually on one side) for a bath/shower. The rest of the bathroom is dry, and frequently does not even have a water outlet. In India, essentially the whole bathroom is a 'wet' area. A full scale bath/shower/bucket wash involves the liberal splashing of water in all directions, making the whole bathroom wet. (This is not helped by the fact that most Indian bathrooms are designed to have a bath area in the centre rather than a shielded off area to one side). The net result of all this is a generally higher humidity level causing mold and fungus to grow around cracks and crevices, to say nothing of water stains from the use of hard water. Most of these are tough to clean or even to prevent. Moreover, old Indian bathrooms had cement floors which are impossible to keep clean. In fact, this is the main reason why people are always asked to take off their shoes before entering a bathroom -- the danger of leaving muddy footprints, which would never happen if the bathroom were kept dry in the first place.
Overall, the idea of a dry bathroom is contrary to the Indian concept of a bathroom where liberal usage of water is considered the norm. Fortunately this is changing albeit slowly, and modern apartments do try and keep a separate area for a shower complete with shower curtain.
None of this excuses the fact that our use of public facilities is totally atrocious. We believe we have almost a right to pollute any and every public space -- assuming that there is always 'someone' to clean up after us. I am of the firm view that this attitude harks back to our old caste system. There always was someone to clean up after us, at least for the upper classes, and we continue in that mode. Which suggests that it will be a long time before these attitudes change.