@WIKI44
The mentioned CAR came into effect only on 8th Aug 2009. So before that, it was free for all!
Some ambiguities still persist. Quote :
"DGCA forwards documents for Security clearance of the foreign flight crew to security agencies. The security clearance requirement shall not be applicable for Indian pilots having valid Indian Flight Crew licenses. Indian pilots who do not possess valid Indian flight crew license shall submit security clearance from Local police authorities from the sate of their domicile"