Please note that there seems to be some movement on the whole Passport Seva issue.
A comment on this blog indicated that CBP didn't know that India would require verification first. The steps on the page for the first two days made no mention of Passport Seva, however that has now been updated. Seems They are offering refunds to anyone who purchased without knowing that they needed to go to India first. Very odd situation, that CBP didn't know that India wanted this!
"Thank you for contacting the U.S. Customs and Border Protection (CBP) Information Center.
The Government of India (GOI) recently informed us of their new requirement to have Indian nationals applying to Global Entry go to India for an interview. As this was not previously disclosed to us or our applicants, we are offering full refunds for anyone that applied before July 6, 2017 who cannot fulfill the GOI terms. We apologize for this, but this is not a U.S. Government requirement but rather the GOI.
Please reply to this email with the PASSID/membership number and we will send the request to process the refund."
Also, the Indian ambassador to the US replied to a tweet saying that these procedures are all being looked into.
"There are still some procedural issues to be sorted out...these are being worked upon."