No bank except HDFC allowed PP usage in India without additional charges. To be specific, PP access to any lounge in India is charged at 27USD and hence it's quite expensive when same lounges allow entry at less than 2k.
I have never encountered HDFC infinia being refused at any lounge. All lounges which accept PP accept cards. In fact there are some lounges which accept only cards and don't accept PP.
Unless the number of lounges is reduced this is not a devaluation. Ppl these days seriously seem to make mountain of a molehill unnecessarily.