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In Australia, commercial surrogacy is illegal. The ban has resulted in a steady flow of heterosexual and gay Australians to India, where the unregulated fertility industry produces hundreds of surrogate babies for Australians each year.

But India's rules changed just before Christmas, excluding singles and gay and de facto heterosexual couples from commissioning surrogate babies.

Australians now require medical visas and the Indian government is precise about who they will issue them to - heterosexual couples who have been married for at least two years.

Almost 400 babies were born to Australians using Indian surrogates in 2011 and a positive DNA test is all the Australian High Commission requires to issue citizenship by descent.

But the sudden change in visa requirements has left dozens of expectant parents currently awaiting their babies' births in breach of Indian law.

Surrogacy law expert Professor Jenni Millbank says babies could be left stateless if the Department of Immigration and Citizenship (DIAC) refuses to issue citizenship to infants created in breach of Indian law.

"I think if this provokes a crisis within DIAC about the...