Thanks Colin.
Had a call with TAC and upgarded to 6.5.0.3. Now its working with IN.
(ARUBA-WLC-MASTER) #show ap allowed-channels ap-name ap-335
Allowed Channels for AP "70:3a:0e:cd:51:6c" Country Code "IN" Country "India"
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PHY Type Allowed Channels
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802.11g (indoor) 1 2 3 4 5 6 7 8 9 10 11 12 13
802.11a (indoor) 36 40 44 48 52 56 60 64 149 153 157 161 165
802.11g (outdoor) 1 2 3 4 5 6 7 8 9 10 11 12 13
802.11a (outdoor) 149 153 157 161 165
802.11g 40MHz (indoor) 1-5 2-6 3-7 4-8 5-9 6-10 7-11 8-12 9-13
802.11a 40MHz (indoor) 36-40 44-48 52-56 60-64 149-153 157-161
802.11g 40MHz (outdoor) 1-5 2-6 3-7 4-8 5-9 6-10 7-11 8-12 9-13
802.11a 40MHz (outdoor) 149-153 157-161
802.11a 80MHz (indoor) 36-48 52-64 149-161
802.11a 80MHz (outdoor) 149-161
802.11a 160MHz (indoor) 36-64
802.11a 160MHz (outdoor) None
802.11a (DFS) None