Yes, You can use but the account owner need to verify it when paypal calls for verification. Don't worry..you can use U.S.A paypal A/c.
It is very risky.It is best you call Paypal and let them know you will be in India for a while so that when you log in to your Paypal account from there, they won't think someone is trying to hack into your account.
not recommended to use it from Indian IP. However you can use VPN and select a US IP which will not risk your account.
NO Don't do that! they will trace your indian IP and limited permanently your account. I have faced same problem and my USA paypal. They freezed my account with $280 and they told that this amount wil be transferred after 180 days.
I would prefer to stay away from doing it , because it might result in limited account and you might get some troble for sometime