B1/B2 visa got rejected due to passport scanning problem - Has Anyone encountered?

[kanhaiyas]

My wife wanted her mother to visit USA and see her after many years. My mother-in-law applied for passport and got her passport on October 01, 2011. We applied for her US visa and her visa interview was on November 01, 2011 in Hindi language in New Delhi, US Embassy. Her US Visa got rejected because the consulate officer could not find file information when they scanned my mother-in-law’s passport. They didn't give any 221 (g) or 214 (b) form. I got in touch with both regional passport office and US embassy through email. Passport office says that passport is fine. US embassy's reply is generic "This is to inform you that the approval or denial of visa is sole discretion of the US Embassy."

Has anyone encountered this situation? Is anyone aware the passport verification process in US embassy? If yes, can you please share the details and experience.