It does seem ridiculous. Though most of the people who were caught in the fraud were the ones who did training in India. But its a desperate measure to fix the issue. Well, everyone knows in India, no matter how many rules you make, they is always a way to bend it or break it.
The only way to fix it is too take care of the corrupt officials.
And a skill test can be conducted by the Flying Clubs in india not necessarily a TRTO.