What the DGCA is trying to do is enforce the Indian Rules of licensing on someone who is converting
The reason they ask DUAL is because someone learning to fly in India has only an SPL . Since they dont hold an instrument rating they cant log PIC while doing under the hood flying or while in actual instrument conditions .
This will also apply to someone doing their recency in India . They will have to log DUAL while undergoing instrument flying as they will only hold an SPL
But since you did your recency and you are a commercial instrument rated pilot you have every right to log PIC while under the hood .
Ofcourse you need a safety pilot on board while undergoing simulated instrument flying
(5) Flight time during which a pilot is under dual instruction shall be entered in his log book as “dual” and the pilot giving instruction shall make entries in the log book of the pilot under instruction showing the nature of the instruction given
Reply to them that you were not undergoing instructional flying and as per rule DUAL can only be logged when undergoing instructional flying
9) The holder of a Commercial, Senior Commercial or Airline Transport Pilot’s Licence may log as pilot-in-command the flight time during which he acts as pilot-in-command. He shall log as co-pilot the flight time during which he acts as co-pilot.
I think the above rule is self explanatory .
Throw their own rules in their face
AIRCRAFT RULE, 1937
I do not know what an observation letter is exactly . But what they are probably going to do is subtract those 5 hours from your PIC time and then see if you still have 15 hours PIC . Otherwise they will reject your license .
@aryancool
I suggest you pack your bags and prepare to visit the DGCA office everyday unless you want to do your recency all over again in India
Also can you give the name of the DGCA officer who is handling your file ?