I tried to inquire with a few others who have landed successfully and had a similar problem.
Its all on reviewing authority/ officers discretion. They are basically looking for the verification letter on the driving license number which has the immigrant details. Now, they have already got all the documents they needed for immigration well verified. If we have the letter from authority in home country that the license belongs to us is in most cases accepted by them. However, some of us may need to do lot of explanation to convince the officers on minor mistakes and a few officers may not accept the licence et all.
Fact is if the licence is not yet expired, there is no way you can renew it in India. Mine is old Name card type and nowadays they issue Plastic card with chip. To make changes on the licence, we need to go thru the entire process of getting a new one. Its worth it no doubt! But I work overseas and cant wait. So I am going to try my luck with the existing licence without the last name on it and the verification letter issued today.