Got a call from the post office near my home. Got slapped with a duty of 871 Rs + 30 Rs some postal charge.
That is pretty high duty for the price i paid for the item. 
Will try to never buy electronics from aliexpress now. I am not even sure if the item is proper and works without any issues or not. I am sure they evaluated the value more than what i paid and probably disregarded the invoice value, no idea if the seller even put a value on the package or not.
No idea what the postal charges they have put.
For me trying to dispute these charges is totally futile as this will involve spending more money than 901 Rs which i am being charged and after that too there is no guarantee that it will be reduced.
The post master person on phone told me that if the parcel was still with customs and you would have got to know the duty, you could have talked to them there itself and put forward your point for reduction but since we do not do all this, it is sort of futile to talk to us on this.
Anyways, you learn something everyday.