Usually Paypal need some document to resolve the problem,just fill up requested document and your account should be okay.
here's the problem i'm from egypt , i opened an indian paypal account only for my internet deals (buy & sell). what can i do to solve this problem ?
Just forget about the account. I am sure you know you were violating and lying during your sign up and that this would happen sooner or later.
If you are planning to continue creating new lies to maintain your account, I would say it is not a wise idea. You will need an Indian Credit Card, Indian Address, Utility Bills and all that. They may even want you to prove that you are travelling to Egypt. Try not to get your friend in trouble.,
If you used all legit things then dont worry , you have to do is to fax the documents which usually take 20-40 days to get limit removed , use upload documents , just scan and upload , utility bill and id proof , and then add a credit card , and rest is easy if you are the real owner.
try to add a VCC it vould help and search over the internet for some kind of indian scanned document and ask someone to forger it it is a lil bit of photoshop i think its possible to fix the problem