I worked in USA from 1998 Aug to 2001 Oct with H1b Visa. Last time When I came back to USA from INDIA with new H1b visa stamping on my passport, US Consulate people by mistake they entered my petition expiry date as 12-Jan-2001 instead of 12-Jan-2002.
I never observed this and I came back to India on vacation in Oct 2001. According to USA INS people I overstayed in America for more than 6 months i.e from 12-Jan-2001 to Oct-2001 and there is a ban on me for 3 years on my reentry to USA.
How should I get it rectified by staying India. Please suggest some thing to solve my problem

You say you worked from Aug 98 to Oct 2001. Did you apply for and receive an H-1b extension? If so, then ask the U.S. Consulate nearest you to look intot he matter. If not, then the reason you were denied reentry and barred was possibly because you overstayed by working longer than the 3 years allowed. You could probably at least have the 3 year bar removed. I'm an attorney and will be in India in April and could do the consular appeal for you. Otherwise, you could submit a letter, explanation and documentation on your own.
Mark