@irb720 Of course Kelley grads get into top grad schools. Search LinkedIn resumes and you’ll see.
Also check out schools feeding into Harvard’s graduate program
http://www.hbs.edu/mba/admissions/class-profile/Pages/undergraduate-institutions.aspx
Yes, IU is there.
It’s my understanding that top grad schools actually care a lot less about where you did your undergrad work than how well you did it (GPA) and your GMAT/LSAT score. Coming from IU Kelley is great as it’s program is well-known and highly regarded. Coming from an unknown or poorly regarded school might be a disadvantage. This topic is discussed to death all over this forum and elsewhere.
Keep in mind that most people hit the workforce first after a Kelley undergrad degree and then go for their MBA/JD later. The exception would be the 3/2 accounting/finance folks.