But doesn't God (according to Hinduism) control these laws? Couldn't he just get rid of them so that humans could be happy? Why maintain these laws and make humans suffer birth after birth? That's as bad as OT God punishing people.
How would we be happy without cause and effect?
Are you essentially asking why are we not originally given Enlightenment and put into heaven?
Because otherwise it doesn't make sense. It would be like asking: why not make it so we cannot feel heat, so that when we place our hand in the fire, it doesn't hurt?