First one must read and understand the relevant Sections of the Passports Act 1967, it's Rules and Notifications. They can be read at http://passportindia.gov.in/AppOnlineProject/online/PassportAct There are also links given in this website to lodge grievances and track them.
For impounding or revoking the passport, the passport authority has to satisfy itself if anything under Section 10(3) of Passports Act 1967 has been actually violated. If nothing has been violated then such impounding or revocation is illegal. Then as per 10(5) Passports Act 1967, one can ask to get the reason for impounding or revocation in writing be given to you and appeal to the appellate authority. If still no justice then one may approach High Court for writ.
What is the meaning of the expression "permanent address"? This expression has not been defined under Passports Act or its Rules. Anything that is not written in enactment does not exist. I would like to know if there is any enactment that defines "permanent address".
Can there be some address that is "permanent"? Probably yes, but only when one reaches to rest permanently in the burial ground or cremation ground. Till then every address is non permanent. Why? Because you can any time sell your house and move to another house. To reside anywhere is your fundamental right under Constitution of India. In other words to NOT have a so called permanent address is also your fundamental right. You may be constantly on the move or live in a mobile house like in a vehicle because right to travel anywhere in India is also your fundamental right. Getting passport is your legal right under Passports Act 1967. It cannot be denied, impounded or revoked merely on the ground that you do not own sufficient property or you do not own a property to reside in it.
Where one is ordinarily residing is supposed to be the so called permanent address. Since to NOT have a so called permanent address is also your fundamental right that is why instead of talking about "permanent address", the Rule 3(2) of Passport Rules 1980 talks about "ordinarily residing" and "not ordinarily residing". Since no address can be actually "permanent", similarly Rule 51(b) of Arms Rules 1962 talks about "ordinarily resides". Similar expressions like ordinarily resident can be found in various enactments like Section 19(b) of the Representation of the People Act etc. etc.
When someone is giving proof of residence to the satisfaction of Passports Act and it's Rules, why do you have to give affidavit or so called NOC from landlord? Under which provisions of law these are being demanded? Why would any landlord give so called NOC for something which he has no concern with or competence to give?