Corrupt DGCA
It appears to me, that this is just another ploy by the corrupt DGCA to get their palms greased. A few Rupee's will change hands on an individual basis and the matter will then be overlooked.
The sooner that ICAO and the rest of the Aviation World realizes that the Indian Government, and the DGCA are doing nothing short of raping everyone the better. Perhaps, the US, UK and Canada should come up with some rules making it extremely difficult for Indian Licensed Pilots to fly into those countries. Then and only then will this Third World Country, with their highly uwarranted superior attitude towards the rest of the world, start to change the way that they do business.
It was reported a couple of days ago in the US, that up to as high as 1/3 of the Student Pilots in the US (a large majority from India) at the moment are here without TSA approval. Hence they are here illegally. So how about the US Government fines each one of them some outrageous amount, sends them packing home and forbids any refund of monies paid for training up to the point they are exported?
Makes about as much sense as what the DGCA has proposed doesn't it? Great way to improve relations across International Lines!!