Thanks for the replies again.
@galaticos: I reasoned the same with the agent at the checkin counter. She said they don't have a connection (or agreement) with DL. I reasoned that i wouldn't have a ticket (itinerary) if they AI and DL have a connection. She didn't buy any of that.
Also I have heard of cases where the originating airline AI in this case charges for excess baggage for all sectors (flights) and gives receipts for each flight separately. This I would have shown to DL at DEL and they wouldn't have charged me again. AI didn't interline my bags that's why i had to pick it up again at DEL and they charged for their sector (HYD - DEL) only so I am assuming AI is at fault. Please correct me if i am wrong.
I have flown HYD - DEL - USA many times before (AI connecting to AA and CO) and i never paid twice. I believe the AI staff at checkin counter are not informed very well.
I did a little big digging at AI website for baggage policy.
http://www.airindia.com/SBCMS/Webpag...e.aspx?MID=27#
Under baggage allowance when interlining on DL, it says that AI should charge according to DL baggage policy. In my case the ticket number is 589 (which is Jet airways ticket) and hence there are no clear rules listed for this case.
Thanks