The court will not order for paper publication in the first hearing itself if he summons have been returned due to non-availability of the respondent in that address. The court will ask the petitioner to send fresh summons to new address if known.It is only after taking this step the court if requested may permit the petition to take steps for substituted service of summons under O5 Rule 20 CPC, and that step will be to serve summon through a popular local newspaper either in English or in vernacular language.
About the DD or some other aspect for which your lawyer demanded extra money, just like that extra money only, there is no such reason in this case.
For paper publication, it is the petitioner who will bear the expenses of getting it published in the newspaper and he need not deposit that amount in the court. If you suspect your lawyer, change him/her immediately.