iamforcp, Sudhirkumar & others -
Eventhough I have been mentioning that I got a PCC from local police station, I actually got it from District Police Office. When I initially went to police station which serves my residence, I was told that they can no longer issue the PCC directly but I have to go to the "special branch" located in main police building of my city and apply there (no forms, handwritten application w/ 65 paise stamp).
So I don\'t know if this is same as you mentioning that local police station CANNOT issue a PCC? May be. Because in my case also, it is NOT the local police station that is giving me the PCC but the "special branch". But "special branch" do rely on clearance from the local police station (like the Indian consulate in NY relies on RPO in India which in turn depends on local police station).
In short, I am going to take the PCC I obtained and see if it works. If not then I already have applied for PCC in Indian consulate in NY.