Yes, I've used it with a Platinum MasterCard before (though the amount was INR 25 in that case). Just the wording mentioning Priority Pass confused me, as that is a different program altogether.
the priority pass is no longer offered as a part of the PM program. All old priority passes will also be withdrawn when they expire. Amount is still 25 in case of mastercard, it never turns up on your bill because you never sign a receipt. it is just a dummy txn.