It means your passport wasn't stamped and you have to resubmit the passport for some reason. This is what happened to my wife. Also check your GCKey if Counterfoil generated or not. If Counterfoil generated then it means Passport Stamped.
I have same situation, My passport is in transit as per Blue Dart but on VFS Tracker it got changed to returned and undelivered message same as yours. When you receive your passport after getting this message ?
Hi i have received similar message and same situation as yours, but Blue dart says your Passport is in transit. What happened after you got that message ?