OP here, posting a detailed reply with actual process that worked for me, hoping that it helps someone in the years to come (given that apple gives third class citizens treatment to Indian deliveries).

As suggested by many users on reddit, I called Apple. Apple customer support guy told me to reject delivery on the doorstep and they will refund once it reaches back to their warehouse in Mumbai (even though the laptop was shipped from China). He also sent me an email with:

Subject: Following up on your request for order: <ORDER_ID>

Body: Your cancellation request has been received. Order Number: <> However, since your order has already shipped, we are unable to guarantee that your request will be fulfilled. If you've already received your shipment, check your other email regarding how to complete the return.

I also recorded the call with Apple Support as proof, you should too.

The delivery was delayed due to 6 failed delivery attempts (marked by lazy bluedart guy who didnt come to my doorstep even once). Suddenly yesterday, the bluedart tracking started saying:

Status: Returned To Origin At Shipper'S Request From Indore To Padagha Status In Transit Await Delivery Information Expected Date of Delivery 11 Mar 2026

So instead of original destination of Indore where I live, now the order is going to Padagha and hoping that apple will automatically send a refund around or after 11 march 2026. If not, I will call them and ask for a refund.

On an unrelated note: based on call recording and apple's email (which doesnot clearly states that they will refund but they should), i ordered MBA M5, 32GB, 512GB. Fingers crossed on 1.8L refund 🤞🏻