So I tried few Reliance Worlds in Bangalore but no luck. Everyone keeps saying its "blocked" and has to be "unblocked" and as per them its not done by Reliance!
Anyway after understanding the knowledge level of the Reliance World guys with respect to foreign handsets, I went ahead and got the MEID registered from Tarun Kabra (Rimweb) for Rs 500. It took about 3 days and I got the Akey, EVDO User/Pass and NVDump (which makes it easier to configure the EVDO credentials) from him. Then I tried dialing *228 and it asked for the 9 digit code which meant the handset has been successfully registered.
So the same day I went to the Reliance World at Cunningham Rd, Bangalore as it seemed less crowded and then they say that the new connection can't be activated directly to the new phone or you need an existing connection with Reliance. Due to the tele verification process, the connection could be activated only the next day and handset transfer can be made only once the number is active. So I went again the next day after the the connection got activated. Regarding handset transfers they are well aware and did it in less than 3 min. He just took my number, then the MEID (Hex) and it was done. I had to dial *228 and it programmed the phone OTA with the MDN, and other such details and phone restarted.
Since I wanted to check whether the Akey gets programmed OTA (which didn't happen), I had not programmed the Akey earlier, so the calls got disconnected after 2s or so. Which got fixed once I came home and wrote the Akey to the phone.
I told the guy at the Reliance World to activate data, and I specifically mentioned HSD. He said I need to activate a data plan first, so I recharged for Rs 94. After which he activated HSD on the number. I wasn't sure as everywhere it was mentioned EVDO activation takes few days etc and it wasn't this easy. He himself wasn't sure, and said this is the only option related to high speed data so this must be it. But data didn't actually work at that time even though I had pre programmed the EVDO and normal data credentials. I reached home and called 198, *355 (Netconnect Customer Care) repeatedly until I got someone who was willing to listen to what I was saying. After few minutes he said High Speed Data was indeed active and I can start using it right away.
But still enabling data on the phone gave an error saying Data Service Unavailable, I accidently pressed the Activate this Device button in the settings page and then the data connection got enabled
Anyway if I disconnect, I need to repeat the process to connect again. Have to check what might be causing it.
And yes EVDO was indeed active and data once connected works perfectly!