avalanche, I have borrowed a book from my friend
Aircraft Manual 2007 Volume-I
On page157, bottom of page
3.1.8 Formation Flights
No civil aircraft shall be flown in formation
On the next page, 3.2.1.2 is missing, maybe deleted.
But that 3.2.1.2 is still on the website as the section 3 link given by you.
3.2.1.2. Aircraft shall not be flown in formation except by pre-arrangement with the appropriate Air Traffic Service Unit.
Did u get that by searching DGCA website?