So, how about using the sim as a chopping tool (am I really saying this?) ? I don't mean pressing the buttons until the thing crashes, but do some real simple N-1 stuff with appropriate Technical, Legal and Flight Safety questions beforehand. The session could be part of the recurrent checks. Then those that get through could be given a real ATPL revalidation
The thing is PM, the corruption and nepotism remains, so as long as the familiy connections are in place, or a suitable 'contribution' is made to the tester, all boxes ticked satisfactory and off it goes again.
ICAO should have stepped in a long time ago and limited Indian registered aircraft on international operations until the DGCA gets the enema it needs.