Varun's humiliation and the reporter's salacious delight suggests that homophobia in India is rather fierce and dark. There are gay characters in Bollywood movies, but usually humorous stereotypes (sort of like the nail-filing, show tune-humming gay "best friend" of the heroine in Hollywood comedies).
And in spite of Varun's problem, Student of the Year has a strong gay subtext (and a gay character).
Ten years pass, and Rohan and Abhi meet again. They argue, fight, and reconcile. Nothing can tarnish such a close friendship. Fade out with just the two of them, no girls in sight.