The rule which Murthy lawyer has quoted is from the Department of State Manual for processing immigrant visa cases which come under alternate chargeability provisions.
http://72.14.235.104/search?q=cache:...lnk&cd=1&gl=in
However the Immigration law states this only
(4) an alien born within any foreign state in which neither of his parents was born and in which neither of his parents had a residence at the time of such alien's birth may be charged to the foreign state of either parent.
Only a lawsuit may solve this matter. Is it worth it? Depends on your desperation!