About validity of degree

As of now, the distane education degree is not valid as you say.since you have completed the degree in regular.classroom mode, I thinknyour degree of post graduation is admissible and valid. Consult the educational higher officials.

The recognition is course wise , year wise.  If it is not fake, you need not worry if the University is having recognized.  Your certificate is genuine.  Your University is genuine.  You are a victim.  The certificate can be used if there is no condition in employment notification that qualified from a  Recognised University. 

You have stated contradictory statements as the university is recognised by UGC whereas its (university) distance programme is not approved by Distance Education Council. Whether Distance Eduction Council is separate and independant body in UGC ?

It would be better to consult and engage a local prudent lawyer for analysing facts/ document, professional advise and necessary proceeding.

There is no constraint in applying for any Government job based on your graduation. Your post graduation, valid or otherwise, is of no material relevance in your selection or promotion for post for which the prescribed qualification is graduation.