Sim deactivated, but not unlocked :( Contract is long over though.. please help!!

My verizon contract ended in March 2014, and after paying all my dues, I deactivated my sim from India..
I tried to put a new sim here in India, but it says my sim is not unlocked yet!! CAn you please help!!

Local Carrier in India told me to unlock it from verizon first and then go to them.. Its also illegal for them to unlock the phone which is locked by other carriers!!
I am so disappointed with Verizon that even after paying my bills correctly.. (my number is 3392033441, pls chk my account details if interested) The customer rep that I spoke to for deactivation, just de-activated my phone, without unlocking... What is the purpose of contract then? as per contract, U will lock the sim til the contract is active., and once the contract is ended, dont you think its your duty to unlock the phone? Its a moral responsibility for verizon to do that.. Now after paying huge bills, I am unable to use my iphone that I got thru verizon!!  really disappointed n after paying so much money, I feel this should be reported as well!!

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